The Advisory Board (NASDAQ: ABCO) and Brink’s Company (The) (NYSE:BCO) are both mid-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and recommmendations for The Advisory Board and Brink’s Company (The), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Advisory Board 1 11 3 0 2.13
Brink’s Company (The) 0 1 3 0 2.75

The Advisory Board presently has a consensus target price of $51.44, suggesting a potential downside of 4.56%. Brink’s Company (The) has a consensus target price of $86.00, suggesting a potential upside of 2.26%. Given Brink’s Company (The)’s stronger consensus rating and higher possible upside, analysts clearly believe Brink’s Company (The) is more favorable than The Advisory Board.

Profitability

This table compares The Advisory Board and Brink’s Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Advisory Board 13.65% 12.69% 3.30%
Brink’s Company (The) 2.73% 34.49% 6.56%

Dividends

Brink’s Company (The) pays an annual dividend of $0.60 per share and has a dividend yield of 0.7%. The Advisory Board does not pay a dividend. Brink’s Company (The) pays out 35.7% of its earnings in the form of a dividend.

Insider & Institutional Ownership

89.9% of Brink’s Company (The) shares are held by institutional investors. 4.7% of The Advisory Board shares are held by insiders. Comparatively, 10.4% of Brink’s Company (The) shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares The Advisory Board and Brink’s Company (The)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
The Advisory Board $799.15 million 2.74 $120.83 million $2.69 20.04
Brink’s Company (The) $3.15 billion 1.35 $340.80 million $1.68 50.06

Brink’s Company (The) has higher revenue and earnings than The Advisory Board. The Advisory Board is trading at a lower price-to-earnings ratio than Brink’s Company (The), indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

The Advisory Board has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Brink’s Company (The) has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.

Summary

Brink’s Company (The) beats The Advisory Board on 10 of the 15 factors compared between the two stocks.

The Advisory Board Company Profile

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.

Brink’s Company (The) Company Profile

The Brink’s Company (Brink’s) is a provider of logistics and security solutions. The Company operates through nine segments: U.S., France, Mexico, Brazil, Canada, Latin America, EMEA, Asia and Payment Services. The Company’s solutions include cash-in-transit (CIT), automated teller machine (ATM) replenishment and maintenance, cash management services, including vault outsourcing, money processing, and intelligent safe services, international transportation of valuables, and payment services. Its customers include financial institutions, retailers, government agencies (including central banks), mints, jewelers and other commercial operations around the world. As of December 31, 2016, the Company’s global network served customers in over 100 countries. Its services offerings include Core Services, High-Value Services and Other Security Services.

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