Lifelock (NYSE: LOCK) and Ritchie Bros. Auctioneers (NYSE:RBA) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.

Volatility and Risk

Lifelock has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Ritchie Bros. Auctioneers has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Earnings and Valuation

This table compares Lifelock and Ritchie Bros. Auctioneers’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lifelock N/A N/A N/A $0.17 141.18
Ritchie Bros. Auctioneers $566.33 million 5.33 $203.46 million $0.47 59.98

Ritchie Bros. Auctioneers has higher revenue and earnings than Lifelock. Ritchie Bros. Auctioneers is trading at a lower price-to-earnings ratio than Lifelock, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Lifelock and Ritchie Bros. Auctioneers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lifelock 1 3 0 0 1.75
Ritchie Bros. Auctioneers 2 5 4 0 2.18

Lifelock currently has a consensus price target of $24.00, indicating a potential upside of 0.00%. Ritchie Bros. Auctioneers has a consensus price target of $30.67, indicating a potential upside of 8.79%. Given Ritchie Bros. Auctioneers’ stronger consensus rating and higher probable upside, analysts plainly believe Ritchie Bros. Auctioneers is more favorable than Lifelock.

Dividends

Ritchie Bros. Auctioneers pays an annual dividend of $0.68 per share and has a dividend yield of 2.4%. Lifelock does not pay a dividend. Ritchie Bros. Auctioneers pays out 144.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ritchie Bros. Auctioneers has raised its dividend for 14 consecutive years.

Institutional & Insider Ownership

88.8% of Lifelock shares are owned by institutional investors. Comparatively, 96.0% of Ritchie Bros. Auctioneers shares are owned by institutional investors. 13.9% of Lifelock shares are owned by insiders. Comparatively, 0.4% of Ritchie Bros. Auctioneers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Lifelock and Ritchie Bros. Auctioneers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lifelock 8.46% 24.53% 10.96%
Ritchie Bros. Auctioneers 8.96% 14.72% 6.14%

Summary

Ritchie Bros. Auctioneers beats Lifelock on 9 of the 14 factors compared between the two stocks.

About Lifelock

LifeLock, Inc. provides proactive identity theft protection services for consumers and consumer risk management services for enterprises. The Company monitors certain identity-related events, such as new account openings and credit-related applications. It operates in two segments: consumer segment and an enterprise segment. The Company’s LifeLock ecosystem combines data repositories of personally identifiable information and consumer transactions, predictive analytics and a technology platform. It applies predictive analytics to the data in its repositories to provide its members and enterprise customers’ actionable intelligence that helps protect against identity theft and identity fraud. It offers its consumer services on a monthly or annual subscription basis. It provides consumer risk management services, including delivering its on-demand identity risk, identity-authentication and credit information about consumers to its enterprise customers in the daily transaction flows.

About Ritchie Bros. Auctioneers

Ritchie Bros Auctioneers Inc is a Canada-based holding company. The Company is an industrial auctioneer and used equipment distributor, selling used equipment and other assets. Its segments include Core Auction, which is a network of auction locations that conduct live, unreserved auctions with both on-site and online bidding, and Other, which includes its EquipmentOne and Mascus International Holding B.V. (Mascus) online services. EquipmentOne is an online marketplace that equipment sellers can navigate independently. EquipmentOne facilitates the completion of sales through a settlement process managed by EquipmentOne that protects both the seller and the buyer. Mascus is an online equipment listing service for used heavy machinery and trucks. It offers subscriptions to equipment dealers, brokers, exporters and equipment manufacturers to list equipment available for sale at a listed price. The Company, through Mascus, provides online advertising services, business tools and solutions.

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