Head to Head Contrast: Wageworks (WAGE) versus Brady (BRC)
Wageworks (NYSE: WAGE) and Brady (NYSE:BRC) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Brady pays an annual dividend of $0.83 per share and has a dividend yield of 2.3%. Wageworks does not pay a dividend. Brady pays out 43.9% of its earnings in the form of a dividend. Brady has raised its dividend for 32 consecutive years.
This table compares Wageworks and Brady’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wageworks||$364.71 million||6.13||$20.20 million||$1.17||48.21|
|Brady||$1.11 billion||1.71||$95.64 million||$1.89||19.50|
Brady has higher revenue and earnings than Wageworks. Brady is trading at a lower price-to-earnings ratio than Wageworks, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Wageworks has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Brady has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.
Insider & Institutional Ownership
77.1% of Brady shares are owned by institutional investors. 3.5% of Wageworks shares are owned by insiders. Comparatively, 15.6% of Brady shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Wageworks and Brady, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Wageworks currently has a consensus target price of $83.00, indicating a potential upside of 47.16%. Brady has a consensus target price of $40.50, indicating a potential upside of 9.91%. Given Wageworks’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Wageworks is more favorable than Brady.
This table compares Wageworks and Brady’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Brady beats Wageworks on 10 of the 17 factors compared between the two stocks.
WageWorks, Inc. is engaged in administering Consumer-Directed Benefits (CDBs). The Company administers CBDs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act (COBRA) and other employee benefits. Its CDB programs assist employees and their families in saving money by using pre-tax dollars to pay for certain of their healthcare, dependent care and commuter expenses. Employers financially benefit from its programs through reduced payroll taxes. It provides operational support services to its clients and its cross-functional teams, including customer support and claims processing. It administers HSAs for employers that allow employee participants to invest funds to be used for qualified healthcare expenses.
Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The Company has two segments: Identification Solutions (IDS) and Workplace Safety (WPS). The IDS segment includes identification and healthcare products, and the WPS segment includes workplace safety and compliance products. The IDS segment offers products that are manufactured under various brands, including the Brady brand, and are primarily sold through distribution to a range of maintenance, repair and operations (MRO) and original equipment manufacturing (OEM) customers, and through other channels. The WPS segment offers a range of product categories, such as safety and compliance signs, tags, and labels; informational and architectural signage; industrial warehouse and office equipment, and labor law compliance posters. Its brands include Electromark, Identicard, PromoVision, Scafftag, Seton and Emedco.
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