Analyzing RB Global (NYSE:RBA) & Acco Brands (NYSE:ACCO)

RB Global (NYSE:RBA) and Acco Brands (NYSE:ACCO) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Profitability

This table compares RB Global and Acco Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RB Global	9.99%	12.37%	5.58%
Acco Brands	3.74%	12.57%	3.69%

Analyst Recommendations

This is a breakdown of current recommendations for RB Global and Acco Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RB Global	0	3	6	1	2.80
Acco Brands	0	2	1	0	2.33

RB Global currently has a consensus target price of $126.00, suggesting a potential upside of 42.85%. Acco Brands has a consensus target price of $6.00, suggesting a potential upside of 31.15%. Given RB Global’s stronger consensus rating and higher probable upside, research analysts clearly believe RB Global is more favorable than Acco Brands.

Dividends

RB Global pays an annual dividend of $1.32 per share and has a dividend yield of 1.5%. Acco Brands pays an annual dividend of $0.30 per share and has a dividend yield of 6.6%. RB Global pays out 56.7% of its earnings in the form of a dividend. Acco Brands pays out 48.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RB Global has raised its dividend for 20 consecutive years. Acco Brands is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares RB Global and Acco Brands”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RB Global	$4.59 billion	3.48	$423.10 million	$2.33	37.86
Acco Brands	$1.52 billion	0.28	$41.30 million	$0.62	7.38

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

Risk & Volatility

RB Global has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Acco Brands has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

95.4% of RB Global shares are held by institutional investors. Comparatively, 84.6% of Acco Brands shares are held by institutional investors. 0.6% of RB Global shares are held by insiders. Comparatively, 5.3% of Acco Brands shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

RB Global beats Acco Brands on 13 of the 18 factors compared between the two stocks.

About RB Global

RB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution. The company's brands include GovPlanet, an online marketplace for the sale of government and military assets; RB Auction, an onsite and online marketplace for selling and buying used equipment; IronPlanet, an online marketplace for selling and buying used equipment; Marketplace-E, an online solution that make offers/buy now format; Rouse Appraisals, a certified appraisal service solution; Ritchie List Mascus, an online equipment listing service and B2B dealer portal; CSAToday, an online reporting and analysis tool that gives sellers the ability to manage their vehicle assets and monitor sales performance; and Catastrophe Response Services. In addition, it offers title, data, transportation and logistics, refurbishing, inspection, and financial services. It serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.

About Acco Brands

ACCO Brands Corporation designs, manufactures, and markets consumer, school, technology, and office products. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company provides computer and gaming accessories, planners, dry erase boards, school notebooks, and janitorial supplies; storage and organization products, such as lever-arch binders, sheet protectors, and indexes; sheet protectors and indexes; laminating, binding, and shredding machines; writing instruments and art products; stapling and punching products; and do-it-yourself tools. It offers its products under the AT-A-GLANCE, Barrilito, Derwent, Esselte, Five Star, Foroni, GBC, Hilroy, Kensington, Leitz, Marbig, Mead, NOBO, PowerA, Quartet, Rapid, Rexel, Swingline, Tilibra, Artline, and Spirax brand names. The company markets and sells its products through various channels, including mass retailers, e-tailers, discount, drug/grocery, and variety chains; warehouse clubs; hardware and specialty stores; independent office product dealers; office superstores; wholesalers; contract stationers; and technology specialty businesses, as well as sells products directly to commercial and consumer end-users through its e-commerce platform and direct sales organization. The company was founded in 1893 and is headquartered in Lake Zurich, Illinois.