ServiceMaster Global Holdings (SERV) vs. Brady Corporation (BRC) Head-To-Head Comparison
Brady Corporation (NYSE: BRC) and ServiceMaster Global Holdings (NYSE:SERV) are both industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
Earnings & Valuation
This table compares Brady Corporation and ServiceMaster Global Holdings’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Brady Corporation||$1.11 billion||1.51||$156.45 million||$1.85||17.68|
|ServiceMaster Global Holdings||$2.84 billion||2.10||$665.00 million||$1.66||26.87|
ServiceMaster Global Holdings has higher revenue and earnings than Brady Corporation. Brady Corporation is trading at a lower price-to-earnings ratio than ServiceMaster Global Holdings, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
74.9% of Brady Corporation shares are held by institutional investors. 15.6% of Brady Corporation shares are held by company insiders. Comparatively, 1.2% of ServiceMaster Global Holdings shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Brady Corporation and ServiceMaster Global Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ServiceMaster Global Holdings||7.92%||40.74%||5.17%|
Brady Corporation pays an annual dividend of $0.82 per share and has a dividend yield of 2.5%. ServiceMaster Global Holdings does not pay a dividend. Brady Corporation pays out 44.3% of its earnings in the form of a dividend. ServiceMaster Global Holdings has raised its dividend for 31 consecutive years.
Volatility and Risk
Brady Corporation has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, ServiceMaster Global Holdings has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
This is a breakdown of recent recommendations for Brady Corporation and ServiceMaster Global Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ServiceMaster Global Holdings||2||0||5||0||2.43|
Brady Corporation currently has a consensus price target of $37.67, indicating a potential upside of 15.19%. ServiceMaster Global Holdings has a consensus price target of $43.57, indicating a potential downside of 2.31%. Given Brady Corporation’s higher possible upside, equities research analysts clearly believe Brady Corporation is more favorable than ServiceMaster Global Holdings.
ServiceMaster Global Holdings beats Brady Corporation on 9 of the 17 factors compared between the two stocks.
About Brady Corporation
Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The Company has two segments: Identification Solutions (IDS) and Workplace Safety (WPS). The IDS segment includes identification and healthcare products, and the WPS segment includes workplace safety and compliance products. The IDS segment offers products that are manufactured under various brands, including the Brady brand, and are primarily sold through distribution to a range of maintenance, repair and operations (MRO) and original equipment manufacturing (OEM) customers, and through other channels. The WPS segment offers a range of product categories, such as safety and compliance signs, tags, and labels; informational and architectural signage; industrial warehouse and office equipment, and labor law compliance posters. Its brands include Electromark, Identicard, PromoVision, Scafftag, Seton and Emedco.
About ServiceMaster Global Holdings
ServiceMaster Global Holdings, Inc. is a provider of essential residential and commercial services. The Company operates through three segments: Terminix, American Home Shield and the Franchise Services Group. Its portfolio of brands includes Terminix, American Home Shield, ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. The Terminix segment provides termite and pest control services in the United States. The American Home Shield segment provides home warranty plans that cover the repair or replacement of components of up to 21 household systems and appliances, including electrical, plumbing, central heating and air conditioning (HVAC) systems, dishwashers and ovens/cook tops. The Franchise Services Group segment consists of the ServiceMaster Restore (disaster restoration), ServiceMaster Clean (janitorial), Merry Maids (residential cleaning), Furniture Medic (cabinet and wood furniture repair) and AmeriSpec (home inspection) businesses.
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