Critical Survey: Ritchie Bros. Auctioneers (RBA) and Cardtronics PLC (CATM)
Ritchie Bros. Auctioneers (NYSE: RBA) and Cardtronics PLC (NASDAQ:CATM) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Institutional & Insider Ownership
96.0% of Ritchie Bros. Auctioneers shares are held by institutional investors. 0.4% of Ritchie Bros. Auctioneers shares are held by company insiders. Comparatively, 1.2% of Cardtronics PLC shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Ritchie Bros. Auctioneers and Cardtronics PLC’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ritchie Bros. Auctioneers||$566.33 million||5.77||$203.46 million||$0.47||64.94|
|Cardtronics PLC||$1.38 billion||0.94||$304.90 million||$1.45||19.70|
Cardtronics PLC has higher revenue and earnings than Ritchie Bros. Auctioneers. Cardtronics PLC is trading at a lower price-to-earnings ratio than Ritchie Bros. Auctioneers, indicating that it is currently the more affordable of the two stocks.
This table compares Ritchie Bros. Auctioneers and Cardtronics PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ritchie Bros. Auctioneers||8.96%||14.72%||6.14%|
Volatility & Risk
Ritchie Bros. Auctioneers has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Cardtronics PLC has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.
This is a summary of current ratings for Ritchie Bros. Auctioneers and Cardtronics PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ritchie Bros. Auctioneers||2||5||4||0||2.18|
Ritchie Bros. Auctioneers presently has a consensus target price of $31.90, suggesting a potential upside of 4.52%. Cardtronics PLC has a consensus target price of $46.50, suggesting a potential upside of 62.82%. Given Cardtronics PLC’s stronger consensus rating and higher possible upside, analysts clearly believe Cardtronics PLC is more favorable than Ritchie Bros. Auctioneers.
Ritchie Bros. Auctioneers pays an annual dividend of $0.68 per share and has a dividend yield of 2.2%. Cardtronics PLC does not pay a dividend. Ritchie Bros. Auctioneers pays out 144.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cardtronics PLC has increased its dividend for 14 consecutive years.
Cardtronics PLC beats Ritchie Bros. Auctioneers on 11 of the 17 factors compared between the two stocks.
About Ritchie Bros. Auctioneers
Ritchie Bros Auctioneers Inc is a Canada-based holding company. The Company is an industrial auctioneer and used equipment distributor, selling used equipment and other assets. Its segments include Core Auction, which is a network of auction locations that conduct live, unreserved auctions with both on-site and online bidding, and Other, which includes its EquipmentOne and Mascus International Holding B.V. (Mascus) online services. EquipmentOne is an online marketplace that equipment sellers can navigate independently. EquipmentOne facilitates the completion of sales through a settlement process managed by EquipmentOne that protects both the seller and the buyer. Mascus is an online equipment listing service for used heavy machinery and trucks. It offers subscriptions to equipment dealers, brokers, exporters and equipment manufacturers to list equipment available for sale at a listed price. The Company, through Mascus, provides online advertising services, business tools and solutions.
About Cardtronics PLC
Cardtronics plc, formerly Cardtronics, Inc., provides automated consumer financial services through its network of automated teller machines (ATMS) and multi-function financial services kiosks. The Company’s operations consists of its North America, Europe, and Corporate & Other segments. Its ATM operations in the United States, Canada, Mexico and Puerto Rico are included in its North America segment. Its ATM operations in the United Kingdom, Ireland, Germany, Poland, Spain and i-design are included in its Europe segment. Its transaction processing operations, which service its North American and European operations, along with external customers, and the Company’s corporate general and administrative functions comprise the Corporate & Other segment. As of December 31, 2016, it provided services to approximately 203,000 ATMs throughout the United States (including the United States territory of Puerto Rico), the United Kingdom, Ireland, Germany, Poland, Spain, Canada and Mexico.
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