Critical Review: Core-Mark Holding (CORE) vs. Macquarie Infrastructure (MIC)
Core-Mark Holding (NASDAQ: CORE) and Macquarie Infrastructure (NYSE:MIC) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.
Insider & Institutional Ownership
99.5% of Core-Mark Holding shares are held by institutional investors. Comparatively, 80.9% of Macquarie Infrastructure shares are held by institutional investors. 2.4% of Core-Mark Holding shares are held by insiders. Comparatively, 5.9% of Macquarie Infrastructure shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Core-Mark Holding and Macquarie Infrastructure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Core-Mark Holding pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. Macquarie Infrastructure pays an annual dividend of $5.52 per share and has a dividend yield of 7.9%. Core-Mark Holding pays out 40.0% of its earnings in the form of a dividend. Macquarie Infrastructure pays out 255.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Core-Mark Holding has increased its dividend for 5 consecutive years.
This is a summary of recent ratings for Core-Mark Holding and Macquarie Infrastructure, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Core-Mark Holding presently has a consensus price target of $39.50, suggesting a potential upside of 15.97%. Macquarie Infrastructure has a consensus price target of $89.33, suggesting a potential upside of 28.44%. Given Macquarie Infrastructure’s higher probable upside, analysts clearly believe Macquarie Infrastructure is more favorable than Core-Mark Holding.
Risk and Volatility
Core-Mark Holding has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Macquarie Infrastructure has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
Valuation and Earnings
This table compares Core-Mark Holding and Macquarie Infrastructure’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Core-Mark Holding||$11.83 billion||0.13||$117.80 million||$0.90||37.84|
|Macquarie Infrastructure||$1.75 billion||3.29||$604.97 million||$2.16||32.20|
Macquarie Infrastructure has higher revenue, but lower earnings than Core-Mark Holding. Macquarie Infrastructure is trading at a lower price-to-earnings ratio than Core-Mark Holding, indicating that it is currently the more affordable of the two stocks.
Macquarie Infrastructure beats Core-Mark Holding on 8 of the 15 factors compared between the two stocks.
Core-Mark Holding Company Profile
Core-Mark Holding Company, Inc. is a wholesale distributor to the convenience retail industry in North America. The Company provides sales, marketing, distribution and logistics services. As of December 31, 2016, the Company offered services to over 43,000 customer locations across the United States and Canada through 30 distribution centers. The Company’s segments include the United States, Canada and Corporate. The Company’s primary customer base consists of traditional convenience stores, as well as alternative outlets selling consumer packaged goods. The Company’s traditional convenience store customers include various national and super-regional convenience store operators, as well as independently owned convenience stores. Its alternative outlet customers include a range of store formats, including grocery stores, drug stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos and hardware stores.
Macquarie Infrastructure Company Profile
Macquarie Infrastructure Corporation owns and operates a group of businesses that provide services, such as bulk liquid terminalling and handling services. The Company operates through four segments: International-Matex Tank Terminals (IMTT), Atlantic Aviation, Contracted Power (CP) and MIC Hawaii. Its group of businesses also provides services, such as aircraft fueling, CP generation and utility gas services. Its group of businesses provides services to businesses, government agencies and individuals in the United States. IMTT segment provides bulk liquid terminal services in the United States. As of December 31, 2016, Atlantic Aviation operated Fixed based operations (FBOs) at 69 airports in the United States. The businesses in its CP segment sell electricity to off-takers, pursuant to multi-year contracts. MIC Hawaii segment consists of Hawaii Gas and several smaller businesses. Hawaii Gas consists of a gas utility and a liquefied petroleum gas (LPG) distribution business.
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