Vectrus (NYSE: VEC) and Checkpoint Systems (NYSE:CKP) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitabiliy, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Profitability

This table compares Vectrus and Checkpoint Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vectrus 2.03% 20.74% 5.17%
Checkpoint Systems -27.26% -50.16% -20.24%

Earnings and Valuation

This table compares Vectrus and Checkpoint Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vectrus $1.17 billion 0.31 $47.11 million $1.96 16.99
Checkpoint Systems N/A N/A N/A N/A N/A

Vectrus has higher revenue and earnings than Checkpoint Systems.

Institutional and Insider Ownership

83.5% of Vectrus shares are held by institutional investors. 3.9% of Vectrus shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Vectrus and Checkpoint Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vectrus 0 1 1 0 2.50
Checkpoint Systems 0 0 0 0 N/A

Vectrus currently has a consensus target price of $22.00, indicating a potential downside of 33.95%. Given Vectrus’ higher probable upside, analysts clearly believe Vectrus is more favorable than Checkpoint Systems.

Summary

Vectrus beats Checkpoint Systems on 8 of the 8 factors compared between the two stocks.

About Vectrus

Vectrus, Inc. is a provider of services to the United States Government across the world. The Company offers services, including infrastructure asset management, logistics and supply chain management, and information technology and network communication. Its infrastructure asset management services support the United States Army, Air Force and Navy, and include infrastructure services, security, warehouse management and distribution, ammunition management, civil engineering, air base maintenance and operations, communications, emergency services, transportation, and life support activities at various global military installations. Its logistics and supply chain management services support and maintain the vehicle and equipment stocks of the United States Army and Marine Corps. Its information technology and network communication services consist of sustainment of communications systems, network security, systems installation and life cycle management of information technology systems.

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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