Collectors Universe (NASDAQ: CLCT) and Emerald Expositions Events (NYSE:EEX) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitabiliy, dividends, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

44.3% of Collectors Universe shares are held by institutional investors. 16.9% of Collectors Universe shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Collectors Universe and Emerald Expositions Events’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Collectors Universe 13.72% 66.87% 33.85%
Emerald Expositions Events N/A N/A N/A

Valuation and Earnings

This table compares Collectors Universe and Emerald Expositions Events’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Collectors Universe $68.58 million 3.23 $16.31 million $1.10 22.60
Emerald Expositions Events $331.61 million 4.85 $145.51 million N/A N/A

Emerald Expositions Events has higher revenue and earnings than Collectors Universe.

Dividends

Collectors Universe pays an annual dividend of $1.40 per share and has a dividend yield of 5.6%. Emerald Expositions Events pays an annual dividend of $0.07 per share and has a dividend yield of 0.3%. Collectors Universe pays out 127.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent ratings and price targets for Collectors Universe and Emerald Expositions Events, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Collectors Universe 0 0 0 0 N/A
Emerald Expositions Events 0 3 5 0 2.63

Emerald Expositions Events has a consensus target price of $24.28, indicating a potential upside of 9.00%. Given Emerald Expositions Events’ higher possible upside, analysts clearly believe Emerald Expositions Events is more favorable than Collectors Universe.

Collectors Universe Company Profile

Collectors Universe, Inc. provides authentication and grading services to dealers and collectors of coins, trading cards, event tickets, autographs and historical and sports memorabilia (collectibles). The Company operates through three segments: coins, trading cards and autographs, and other collectibles. The Company is engaged in the authentication, grading, publication and Web-based advertising, subscription-based business and product sales. The other collectibles segment includes the Certified Coin Exchange (CCE) subscription business, the Coinflation.com business and its collectibles conventions business. The Company is also engaged in selling of printed publications and collectibles price guides and advertising in such publications; selling of membership subscriptions in its Collectors Club; selling of subscriptions to its CCE dealer-to-dealer Internet bid-ask market for certified coins and to its CoinFacts Website, and conducting collectibles trade shows and conventions.

Emerald Expositions Events Company Profile

Emerald Expositions Events, Inc. (Emerald), formerly Expo Event Holdco, Inc, is an operator of business-to-business (B2B) trade shows. The Company operates across multiple sectors, which includes: Gift, Home and General Merchandise; Sports; Design and Construction; Technology; Jewelry; Other Trade Shows; and Other Events. The Company operates more than 50 trade shows, including 31 of the top 250 trade shows. It operates 13 trade shows in the Gift, Home and General Merchandise sector; 18 trade shows in Sports sector; five trade shows in Design and Construction; six trade shows in the Technology sector; six trade shows in Jewelry sector; and remaining 10 trade shows in other sectors . In 2016, its events connected over 500,000 global attendees and exhibitors and occupied over 6.5 million net square foot (NSF) of exhibition space.

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