Higher One Holdings (NYSE: ONE) and Ituran Location and Control (NASDAQ:ITRN) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitabiliy, analyst recommendations, valuation, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for Higher One Holdings and Ituran Location and Control, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Higher One Holdings 0 0 0 0 N/A
Ituran Location and Control 0 0 1 0 3.00

Ituran Location and Control has a consensus target price of $31.00, suggesting a potential upside of 1.97%. Given Ituran Location and Control’s higher possible upside, analysts plainly believe Ituran Location and Control is more favorable than Higher One Holdings.

Dividends

Ituran Location and Control pays an annual dividend of $0.96 per share and has a dividend yield of 3.2%. Higher One Holdings does not pay a dividend. Ituran Location and Control pays out 53.0% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Higher One Holdings and Ituran Location and Control’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Higher One Holdings N/A N/A N/A $0.16 32.19
Ituran Location and Control $209.49 million 3.04 $62.54 million $1.81 16.80

Ituran Location and Control has higher revenue and earnings than Higher One Holdings. Ituran Location and Control is trading at a lower price-to-earnings ratio than Higher One Holdings, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Higher One Holdings has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Ituran Location and Control has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Profitability

This table compares Higher One Holdings and Ituran Location and Control’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Higher One Holdings -26.77% -16.36% -10.01%
Ituran Location and Control 18.15% 35.51% 21.61%

Insider and Institutional Ownership

52.2% of Ituran Location and Control shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Ituran Location and Control beats Higher One Holdings on 9 of the 11 factors compared between the two stocks.

About Higher One Holdings

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.

About Ituran Location and Control

Ituran Location and Control Ltd. is a provider of location-based services, consisting of stolen vehicle recovery (SVR), fleet management services and other tracking services. The Company also provides wireless communication products used in connection with its location-based services and various other applications. Its operations consist of two segments: location-based services and wireless communications products. Its location-based services segment consists of its SVR and tracking services, fleet management and value-added services consisted of personal locater services and concierge services. Its wireless communications products segment consists of short and medium range two-way machine-to-machine wireless communications products that are used for various applications, including automatic vehicle location (AVL) and automatic vehicle identification. It primarily provides its services, as well as sells and leases its products in Israel, Brazil, Argentina and the United States.

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