Contrasting Ritchie Bros. Auctioneers (RBA) and Cardtronics PLC (CATM)

Ritchie Bros. Auctioneers (NYSE: RBA) and Cardtronics PLC (NASDAQ:CATM) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Profitability

This table compares Ritchie Bros. Auctioneers and Cardtronics PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ritchie Bros. Auctioneers 8.96% 14.72% 6.14%
Cardtronics PLC 4.83% 28.23% 7.72%

Institutional and Insider Ownership

96.1% of Ritchie Bros. Auctioneers shares are held by institutional investors. 0.4% of Ritchie Bros. Auctioneers shares are held by company insiders. Comparatively, 1.2% of Cardtronics PLC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Ritchie Bros. Auctioneers has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Cardtronics PLC has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Ritchie Bros. Auctioneers and Cardtronics PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ritchie Bros. Auctioneers 2 5 4 0 2.18
Cardtronics PLC 0 2 3 0 2.60

Ritchie Bros. Auctioneers currently has a consensus target price of $31.90, indicating a potential upside of 5.32%. Cardtronics PLC has a consensus target price of $46.50, indicating a potential upside of 64.89%. Given Cardtronics PLC’s stronger consensus rating and higher probable upside, analysts plainly believe Cardtronics PLC is more favorable than Ritchie Bros. Auctioneers.

Valuation and Earnings

This table compares Ritchie Bros. Auctioneers and Cardtronics PLC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ritchie Bros. Auctioneers $566.33 million 5.73 $203.46 million $0.47 64.45
Cardtronics PLC $1.38 billion 0.93 $304.90 million $1.45 19.45

Cardtronics PLC has higher revenue and earnings than Ritchie Bros. Auctioneers. Cardtronics PLC is trading at a lower price-to-earnings ratio than Ritchie Bros. Auctioneers, indicating that it is currently the more affordable of the two stocks.

Dividends

Ritchie Bros. Auctioneers pays an annual dividend of $0.68 per share and has a dividend yield of 2.2%. Cardtronics PLC does not pay a dividend. Ritchie Bros. Auctioneers pays out 144.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cardtronics PLC has raised its dividend for 14 consecutive years.

Summary

Cardtronics PLC beats Ritchie Bros. Auctioneers on 11 of the 17 factors compared between the two stocks.

Ritchie Bros. Auctioneers Company Profile

Ritchie Bros Auctioneers Inc is a Canada-based holding company. The Company is an industrial auctioneer and used equipment distributor, selling used equipment and other assets. Its segments include Core Auction, which is a network of auction locations that conduct live, unreserved auctions with both on-site and online bidding, and Other, which includes its EquipmentOne and Mascus International Holding B.V. (Mascus) online services. EquipmentOne is an online marketplace that equipment sellers can navigate independently. EquipmentOne facilitates the completion of sales through a settlement process managed by EquipmentOne that protects both the seller and the buyer. Mascus is an online equipment listing service for used heavy machinery and trucks. It offers subscriptions to equipment dealers, brokers, exporters and equipment manufacturers to list equipment available for sale at a listed price. The Company, through Mascus, provides online advertising services, business tools and solutions.

Cardtronics PLC Company Profile

Cardtronics plc, formerly Cardtronics, Inc., provides automated consumer financial services through its network of automated teller machines (ATMS) and multi-function financial services kiosks. The Company’s operations consists of its North America, Europe, and Corporate & Other segments. Its ATM operations in the United States, Canada, Mexico and Puerto Rico are included in its North America segment. Its ATM operations in the United Kingdom, Ireland, Germany, Poland, Spain and i-design are included in its Europe segment. Its transaction processing operations, which service its North American and European operations, along with external customers, and the Company’s corporate general and administrative functions comprise the Corporate & Other segment. As of December 31, 2016, it provided services to approximately 203,000 ATMs throughout the United States (including the United States territory of Puerto Rico), the United Kingdom, Ireland, Germany, Poland, Spain, Canada and Mexico.

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