Comparing Heritage Global (NASDAQ:HGBL) and NCR Atleos (NYSE:NATL)

NCR Atleos (NYSE:NATL) and Heritage Global (NASDAQ:HGBL) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for NCR Atleos and Heritage Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NCR Atleos	0	4	1	0	2.20
Heritage Global	1	0	1	0	2.00

NCR Atleos currently has a consensus target price of $50.27, indicating a potential upside of 8.66%. Heritage Global has a consensus target price of $3.00, indicating a potential upside of 127.27%. Given Heritage Global’s higher possible upside, analysts clearly believe Heritage Global is more favorable than NCR Atleos.

Earnings and Valuation

This table compares NCR Atleos and Heritage Global”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NCR Atleos	$4.35 billion	0.79	$162.00 million	$2.58	17.93
Heritage Global	$50.98 million	0.90	$3.59 million	($0.41)	-3.22

NCR Atleos has higher revenue and earnings than Heritage Global. Heritage Global is trading at a lower price-to-earnings ratio than NCR Atleos, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

NCR Atleos has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Heritage Global has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Insider and Institutional Ownership

88.7% of NCR Atleos shares are held by institutional investors. Comparatively, 33.5% of Heritage Global shares are held by institutional investors. 0.6% of NCR Atleos shares are held by company insiders. Comparatively, 15.6% of Heritage Global shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares NCR Atleos and Heritage Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NCR Atleos	4.44%	83.41%	5.87%
Heritage Global	-29.63%	6.12%	4.69%

Summary

NCR Atleos beats Heritage Global on 10 of the 13 factors compared between the two stocks.

About NCR Atleos

NCR Atleos Corporation operates as a financial technology company in the United States, rest of the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Self-Service Banking, Network, and Telecommunications & Technology (T&T). The Self-Service Banking segment offers solutions, including a line of automated teller machine (ATM) and interactive teller machine (ITM) hardware and software, as well as related installation, maintenance, and managed and professional services; and solutions to manage and run the ATM channel end-to-end for financial institutions comprising back office, cash management, software management and ATM deployment, and others. The Network segment provides a network of ATMs and multi-functioning financial services kiosks for financial institutions, fintechs, neobanks, and retailers; Allpoint network for credit unions, banks, digital banks, fintechs, stored-value debit card issuers, and other consumer financial services providers; ReadyCode to convert a digital value to cash or cash to a digital value; ATM branding solutions to financial institutions; ATM management and services to retailers and other businesses; and engages in the buying and selling of Bitcoins. The T&T segment offers managed network and infrastructure services to enterprise clients across various industries through communications service providers and technology manufacturers; and professional, field, and remote services for modern network technologies, including software-defined wide area networking, network functions virtualization, wireless local area networks, optical networking, and edge networks. NCR Atleos Corporation is headquartered in Atlanta, Georgia.

About Heritage Global

Heritage Global Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions. The company operates in three segments: Auction and Liquidation, Refurbishment & Resale, and Brokerage. It provides a suite of market making, acquisitions, refurbishment, dispositions, valuations, and secured lending services. The company focuses on identifying, valuing, acquiring, and monetizing underlying tangible assets. It acts as an adviser, as well as a principal, acquiring, or brokering manufacturing facilities; surplus industrial machinery and equipment; industrial inventories; and charged-off receivable portfolios. The company was formerly known as Counsel RB Capital Inc. and changed its name to Heritage Global, Inc. in August 2013. Heritage Global, Inc. was founded in 1937 and is headquartered in San Diego, California.