MITCHAM INDUSTR/SH (NASDAQ:MIND) and Aaron’s (NYSE:AAN) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Valuation & Earnings

This table compares MITCHAM INDUSTR/SH and Aaron’s’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MITCHAM INDUSTR/SH $48.28 million 0.92 -$21.06 million N/A N/A
Aaron’s $3.38 billion 0.99 $292.53 million $2.56 19.04

Aaron’s has higher revenue and earnings than MITCHAM INDUSTR/SH.

Dividends

Aaron’s pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. MITCHAM INDUSTR/SH does not pay a dividend. Aaron’s pays out 4.7% of its earnings in the form of a dividend. Aaron’s has increased its dividend for 11 consecutive years.

Institutional & Insider Ownership

73.2% of MITCHAM INDUSTR/SH shares are held by institutional investors. Comparatively, 100.0% of Aaron’s shares are held by institutional investors. 9.8% of MITCHAM INDUSTR/SH shares are held by insiders. Comparatively, 2.3% of Aaron’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for MITCHAM INDUSTR/SH and Aaron’s, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MITCHAM INDUSTR/SH 0 0 0 0 N/A
Aaron’s 0 2 8 0 2.80

Aaron’s has a consensus target price of $55.67, indicating a potential upside of 14.19%. Given Aaron’s’ higher possible upside, analysts plainly believe Aaron’s is more favorable than MITCHAM INDUSTR/SH.

Volatility and Risk

MITCHAM INDUSTR/SH has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Aaron’s has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Profitability

This table compares MITCHAM INDUSTR/SH and Aaron’s’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MITCHAM INDUSTR/SH -67.30% -39.33% -27.84%
Aaron’s 8.39% 12.22% 7.96%

Summary

Aaron’s beats MITCHAM INDUSTR/SH on 11 of the 14 factors compared between the two stocks.

MITCHAM INDUSTR/SH Company Profile

Mitcham Industries, Inc., through its subsidiaries, provides technology to the oceanographic, hydrographic, defense, seismic and maritime security industries worldwide. The company operates in two segments, Marine Technology Products, and Equipment Leasing. The Marine Technology Products segment develops, manufactures, and sells proprietary products. Its products include GunLink seismic source acquisition and control systems that provide operators of marine seismic surveys with precise monitoring and control of energy sources; BuoyLink RGPS tracking systems, which are used to offer precise positioning of marine seismic energy sources and streamers; Digishot energy source controllers; Sleeve Gun energy sources; and SeaLink product line of marine sensors and solid streamer systems. This segment also provides streamer weight collars, depth and pressure transducers, air control valves, and source array systems; spare and replacement parts; repair services, engineering services, training, field service operations, and umbilical termination; and equipment, consumables, systems integration, engineering hardware, and software maintenance support services. The Equipment Leasing segment leases seismic equipment for short-term primarily to seismic data acquisition contractors and oil field service providers. This segment is also involved in the sale of other seismic equipment of other manufacturers; and used equipment from its lease pool. Mitcham Industries, Inc. was founded in 1987 and is headquartered in Huntsville, Texas.

Aaron’s Company Profile

Aaron's, Inc. operates as an omnichannel provider of lease-purchase solutions. It operates through three segments: Progressive Leasing, Aaron's Business, and DAMI. The company engages in the sale, lease ownership, and specialty retailing of furniture, consumer electronics, home appliances, and accessories. As of February 15, 2018, it operated approximately 1,726 company-operated and franchised stores in 47 states and Canada, as well as its e-commerce platform, Aarons.com. Aaron's, Inc. was founded in 1955 and is headquartered in Atlanta, Georgia.

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