Comparing Higher One (ONE) & General Finance (GFN)

Higher One (NYSE: ONE) and General Finance (NASDAQ:GFN) are both small-cap business support services – nec companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Volatility & Risk

Higher One has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, General Finance has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Insider & Institutional Ownership

27.6% of General Finance shares are owned by institutional investors. 25.9% of General Finance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Higher One and General Finance, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Higher One 0 0 0 0 N/A
General Finance 0 1 1 0 2.50

General Finance has a consensus target price of $9.20, indicating a potential upside of 31.43%. Given General Finance’s higher possible upside, analysts clearly believe General Finance is more favorable than Higher One.

Profitability

This table compares Higher One and General Finance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Higher One -26.77% -16.36% -10.01%
General Finance -0.73% -1.29% -0.31%

Valuation & Earnings

This table compares Higher One and General Finance’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Higher One N/A N/A N/A ($0.62) -8.31
General Finance $276.93 million 0.67 -$2.96 million ($0.21) -33.33

Higher One has higher earnings, but lower revenue than General Finance. General Finance is trading at a lower price-to-earnings ratio than Higher One, indicating that it is currently the more affordable of the two stocks.

Summary

General Finance beats Higher One on 9 of the 11 factors compared between the two stocks.

Higher One Company Profile

Higher One Holdings, Inc. is a provider of technology-based payment processing and refund disbursement services to higher education institutions and their students. The Company also provides campus communities with student-oriented banking services, which include user-friendly features, through its bank partners. The Company operates through two segments: Disbursements and Payments. The Disbursements segment includes its Refund Management disbursement service, which is offered to higher education institution clients, and the OneAccount, a Federal Deposit Insurance Corporation (FDIC)-insured online checking account that is offered to students, as well as faculty, staff and alumni. The Payments segment includes its CASHNet payment processing suite and its Campus Solutions suite, both of which enable higher education institutions to accept online payments, automate certain billing and processing functions, and offer tuition payment plans.

General Finance Company Profile

General Finance Corporation is a specialty rental services company. The Company offers a range of portable storage units, including its core 20-feet and 40-feet steel containers, office container, mobile office and modular space products and steel tanks. It has two geographic areas that include its four operating segments: the Asia-Pacific area, consisting of the leasing operations of Royal Wolf Holdings Limited and its Australian and New Zealand subsidiaries (Royal Wolf), and North America, consisting of the combined leasing operations of Pac-Van, Inc. and its Canadian subsidiary, PV Acquisition Corp. (Pac-Van) and Lone Star Tank Rental Inc. (Lone Star), and the manufacturing operations of GFN Manufacturing Corporation and its subsidiary, Southern Frac, LLC (Southern Frac). As of June 30, 2016, the Company provided its storage solutions to over 41,000 customers across a range of industries, including commercial, construction, retail, transportation, education and others.

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