Analyzing Checkpoint Systems (CKP) & The Advisory Board (ABCO)

The Advisory Board (NASDAQ: ABCO) and Checkpoint Systems (NYSE:CKP) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for The Advisory Board and Checkpoint Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Advisory Board 0 11 3 0 2.21
Checkpoint Systems 0 0 0 0 N/A

The Advisory Board currently has a consensus price target of $51.44, suggesting a potential downside of 4.44%. Given The Advisory Board’s higher probable upside, equities research analysts plainly believe The Advisory Board is more favorable than Checkpoint Systems.

Insider and Institutional Ownership

95.5% of The Advisory Board shares are owned by institutional investors. 4.7% of The Advisory Board 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.

Volatility & Risk

The Advisory Board has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Checkpoint Systems has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Profitability

This table compares The Advisory Board and Checkpoint Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Advisory Board -3.42% 0.48% -1.23%
Checkpoint Systems -27.26% -50.16% -20.24%

Earnings & Valuation

This table compares The Advisory Board and Checkpoint Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Advisory Board $803.42 million 2.73 $91.23 million $1.74 30.94
Checkpoint Systems N/A N/A N/A ($1.32) -7.68

The Advisory Board has higher revenue and earnings than Checkpoint Systems. Checkpoint Systems is trading at a lower price-to-earnings ratio than The Advisory Board, indicating that it is currently the more affordable of the two stocks.

Summary

The Advisory Board beats Checkpoint Systems on 10 of the 11 factors compared between the two stocks.

About The Advisory Board

The Advisory Board Company is a provider of software and solutions to the healthcare and higher education industries. The Company offers subscription-based membership programs, software and data-enabled services. All of its programs are rooted in best practices and extends across four areas, including Best practices research, Technology, Data-enabled services and Consulting services. The best practices research and insight programs provide the foundation for all of its other programs. The Company offers technology analytics programs anchored by cloud-based software applications that surface performance improvement opportunities to accelerate progress. Through its consulting services, the Company provides on-the-ground support for performance improvement initiatives, as well as best practice professional management of areas of the hospital or medical group. The Company’s data-enabled services are primarily focused in the area of enrollment management.

About Checkpoint Systems

Checkpoint Systems, Inc. is a United States-based supplier of merchandise availability solutions for the retail industry. The Company provides end-to-end solutions enabling retailers to achieve real-time inventory, accelerate the replenishment cycle, prevent out-of-stocks and reduce theft. It offers merchandise availability solutions, such as shrink management, including antennas, labels and tags, source tagging, deactivation, remote service and support, and Alpha High Theft Solutions, and merchandise visibility solutions, including inventory management, asset tracking and OneTag Program. OneTag Program allows retailers to obtain the benefits of inventory visibility and loss prevention with a single radio frequency identification tag. It offers apparel labelling solutions, such as Trim, including woven labels, printed fabric labels and specialty trim services, and brand merchandising, including printed items and self-adhesive. It serves markets, such as electronics and grocery.

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