ACV Auctions (NYSE:ACVA) vs. Brink’s (NYSE:BCO) Financial Review

Brink’s (NYSE:BCO) and ACV Auctions (NYSE:ACVA) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Institutional & Insider Ownership

95.0% of Brink’s shares are owned by institutional investors. Comparatively, 88.5% of ACV Auctions shares are owned by institutional investors. 1.0% of Brink’s shares are owned by insiders. Comparatively, 4.4% of ACV Auctions shares are owned 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Brink’s and ACV Auctions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brink’s	0	2	2	0	2.50
ACV Auctions	3	4	6	2	2.47

Brink’s presently has a consensus target price of $154.00, suggesting a potential upside of 41.51%. ACV Auctions has a consensus target price of $9.50, suggesting a potential upside of 35.52%. Given Brink’s’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Brink’s is more favorable than ACV Auctions.

Risk & Volatility

Brink’s has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, ACV Auctions has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.

Profitability

This table compares Brink’s and ACV Auctions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brink’s	3.30%	87.18%	4.95%
ACV Auctions	-7.88%	-6.01%	-2.22%

Earnings and Valuation

This table compares Brink’s and ACV Auctions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brink’s	$5.26 billion	0.85	$199.70 million	$4.32	25.19
ACV Auctions	$759.61 million	1.57	-$66.14 million	($0.36)	-19.47

Brink’s has higher revenue and earnings than ACV Auctions. ACV Auctions is trading at a lower price-to-earnings ratio than Brink’s, indicating that it is currently the more affordable of the two stocks.

Summary

Brink’s beats ACV Auctions on 10 of the 15 factors compared between the two stocks.

About Brink’s

The Brink’s Co. engages in providing cash management services, digital retail solutions, and ATM managed services. It operates through the following geographical segments: North America, Latin America, Europe, and Rest of World. The North America segment operates in the U.S. and Canada. The Latin America segment refers to the operations in Latin American countries. The Europe segment relates to operations in European countries. The Rest of World segment focuses on the operations in the Middle East, Africa, and Asia. The company was founded by Perry Brink and Fidelia Brink on May 5, 1859 and is headquartered in Richmond, VA.

About ACV Auctions

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. It also provides data services that offer insights into the condition and value of used vehicles, as well as offers customer financing services. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.