Critical Analysis: Checkpoint Systems (CKP) & Its Peers
Checkpoint Systems (NYSE: CKP) is one of 98 public companies in the “Business Support Services” industry, but how does it contrast to its peers? We will compare Checkpoint Systems to related businesses based on the strength of its earnings, analyst recommendations, dividends, profitability, institutional ownership, valuation and risk.
Volatility and Risk
Checkpoint Systems has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Checkpoint Systems’ peers have a beta of 1.13, suggesting that their average stock price is 13% more volatile than the S&P 500.
This table compares Checkpoint Systems and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Checkpoint Systems Competitors||-30.93%||-178.68%||1.73%|
Valuation and Earnings
This table compares Checkpoint Systems and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Checkpoint Systems Competitors||$1.24 billion||$76.68 million||1,459.95|
Checkpoint Systems’ peers have higher revenue and earnings than Checkpoint Systems. Checkpoint Systems is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a summary of current recommendations and price targets for Checkpoint Systems and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Checkpoint Systems Competitors||640||1884||2616||64||2.40|
As a group, “Business Support Services” companies have a potential upside of 0.30%. Given Checkpoint Systems’ peers higher probable upside, analysts plainly believe Checkpoint Systems has less favorable growth aspects than its peers.
Institutional & Insider Ownership
62.9% of shares of all “Business Support Services” companies are owned by institutional investors. 12.9% of shares of all “Business Support Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Checkpoint Systems peers beat Checkpoint Systems on 5 of the 8 factors compared.
Checkpoint Systems Company Profile
Checkpoint Systems, Inc. is a United States-based supplier of merchandise availability solutions for the retail industry. The Company provides end-to-end solutions enabling retailers to achieve real-time inventory, accelerate the replenishment cycle, prevent out-of-stocks and reduce theft. It offers merchandise availability solutions, such as shrink management, including antennas, labels and tags, source tagging, deactivation, remote service and support, and Alpha High Theft Solutions, and merchandise visibility solutions, including inventory management, asset tracking and OneTag Program. OneTag Program allows retailers to obtain the benefits of inventory visibility and loss prevention with a single radio frequency identification tag. It offers apparel labelling solutions, such as Trim, including woven labels, printed fabric labels and specialty trim services, and brand merchandising, including printed items and self-adhesive. It serves markets, such as electronics and grocery.
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