Brink’s Company (The) (NYSE: BCO) and WageWorks (NYSE:WAGE) are both mid-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
This is a summary of recent ratings and recommmendations for Brink’s Company (The) and WageWorks, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brink’s Company (The)||0||1||3||0||2.75|
Brink’s Company (The) currently has a consensus price target of $92.00, suggesting a potential upside of 7.85%. WageWorks has a consensus price target of $80.30, suggesting a potential upside of 25.37%. Given WageWorks’ stronger consensus rating and higher possible upside, analysts plainly believe WageWorks is more favorable than Brink’s Company (The).
Earnings and Valuation
This table compares Brink’s Company (The) and WageWorks’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Brink’s Company (The)||$3.15 billion||1.37||$340.80 million||$1.68||50.77|
|WageWorks||$434.87 million||5.85||$81.87 million||$1.09||58.76|
Brink’s Company (The) has higher revenue and earnings than WageWorks. Brink’s Company (The) is trading at a lower price-to-earnings ratio than WageWorks, indicating that it is currently the more affordable of the two stocks.
This table compares Brink’s Company (The) and WageWorks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brink’s Company (The)||2.73%||34.49%||6.56%|
Institutional and Insider Ownership
89.9% of Brink’s Company (The) shares are owned by institutional investors. 10.4% of Brink’s Company (The) shares are owned by company insiders. Comparatively, 3.5% of WageWorks shares are owned 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.
Brink’s Company (The) pays an annual dividend of $0.60 per share and has a dividend yield of 0.7%. WageWorks does not pay a dividend. Brink’s Company (The) pays out 35.7% of its earnings in the form of a dividend.
Risk & Volatility
Brink’s Company (The) has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, WageWorks has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Brink’s Company (The) beats WageWorks on 9 of the 16 factors compared between the two stocks.
About Brink’s Company (The)
The Brink’s Company (Brink’s) is a provider of logistics and security solutions. The Company operates through nine segments: U.S., France, Mexico, Brazil, Canada, Latin America, EMEA, Asia and Payment Services. The Company’s solutions include cash-in-transit (CIT), automated teller machine (ATM) replenishment and maintenance, cash management services, including vault outsourcing, money processing, and intelligent safe services, international transportation of valuables, and payment services. Its customers include financial institutions, retailers, government agencies (including central banks), mints, jewelers and other commercial operations around the world. As of December 31, 2016, the Company’s global network served customers in over 100 countries. Its services offerings include Core Services, High-Value Services and Other Security Services.
WageWorks, Inc. is engaged in administering Consumer-Directed Benefits (CDBs). The Company administers CBDs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act (COBRA) and other employee benefits. Its CDB programs assist employees and their families in saving money by using pre-tax dollars to pay for certain of their healthcare, dependent care and commuter expenses. Employers financially benefit from its programs through reduced payroll taxes. It provides operational support services to its clients and its cross-functional teams, including customer support and claims processing. It administers HSAs for employers that allow employee participants to invest funds to be used for qualified healthcare expenses.
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