Liberty Tax (OTCMKTS: TAXA) is one of 25 publicly-traded companies in the “Patent owners & lessors” industry, but how does it weigh in compared to its competitors? We will compare Liberty Tax to related companies based on the strength of its analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Risk & Volatility

Liberty Tax has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Liberty Tax’s competitors have a beta of 1.85, indicating that their average stock price is 85% more volatile than the S&P 500.

Institutional and Insider Ownership

28.6% of Liberty Tax shares are owned by institutional investors. Comparatively, 36.0% of shares of all “Patent owners & lessors” companies are owned by institutional investors. 15.3% of Liberty Tax shares are owned by company insiders. Comparatively, 18.6% of shares of all “Patent owners & lessors” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Liberty Tax and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Tax 0.07% 0.43% 0.20%
Liberty Tax Competitors -131.01% -47.21% -33.23%

Earnings and Valuation

This table compares Liberty Tax and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Liberty Tax $174.87 million $130,000.00 N/A
Liberty Tax Competitors $185.18 million $7.71 million 2.24

Liberty Tax’s competitors have higher revenue and earnings than Liberty Tax.

Dividends

Liberty Tax pays an annual dividend of $0.64 per share and has a dividend yield of 6.4%. As a group, “Patent owners & lessors” companies pay a dividend yield of 1.9% and pay out 29.3% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings for Liberty Tax and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Tax 0 0 0 0 N/A
Liberty Tax Competitors 95 314 615 12 2.53

As a group, “Patent owners & lessors” companies have a potential upside of 32.88%. Given Liberty Tax’s competitors higher possible upside, analysts clearly believe Liberty Tax has less favorable growth aspects than its competitors.

Summary

Liberty Tax competitors beat Liberty Tax on 6 of the 11 factors compared.

Liberty Tax Company Profile

Liberty Tax, Inc., through its subsidiaries, provides tax preparation services in the United States and Canada. The company also facilitates refund-based tax settlement financial products, such as refund transfer products and personal income tax refund discounting, as well as provides an online digital Do-It-Yourself tax program in the United States. Its customers include taxpayers who, for reasons of complexity, convenience, or the need for prompt tax refunds, seek assisted tax preparation services. The company offers its products and services through a network of company-owned offices and franchised locations under the Liberty Tax, Liberty Tax Service, Liberty Income Tax, Liberty Canada, and SiempreTax+ brand names. The company was formerly known as JTH Holding, Inc. and changed its name to Liberty Tax, Inc. in July 2014. Liberty Tax, Inc. was founded in 1996 and is headquartered in Virginia Beach, Virginia.

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