Cardtronics (NASDAQ: CATM) and Brady (NYSE:BRC) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Risk & Volatility

Cardtronics has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Brady has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cardtronics and Brady, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardtronics 0 3 2 0 2.40
Brady 1 2 1 0 2.00

Cardtronics currently has a consensus target price of $37.00, suggesting a potential upside of 100.43%. Brady has a consensus target price of $38.75, suggesting a potential upside of 0.13%. Given Cardtronics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Cardtronics is more favorable than Brady.

Valuation & Earnings

This table compares Cardtronics and Brady’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardtronics $1.27 billion 0.67 $87.99 million ($2.99) -6.17
Brady $1.11 billion 1.79 $95.64 million $1.88 20.59

Brady has lower revenue, but higher earnings than Cardtronics. Cardtronics is trading at a lower price-to-earnings ratio than Brady, indicating that it is currently the more affordable of the two stocks.

Dividends

Brady pays an annual dividend of $0.83 per share and has a dividend yield of 2.1%. Cardtronics does not pay a dividend. Brady pays out 44.1% of its earnings in the form of a dividend. Cardtronics has increased its dividend for 31 consecutive years.

Insider and Institutional Ownership

77.2% of Brady shares are held by institutional investors. 1.2% of Cardtronics shares are held by insiders. Comparatively, 15.6% of Brady shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Cardtronics and Brady’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardtronics -9.37% 29.32% 7.19%
Brady 8.81% 13.90% 9.14%

Summary

Brady beats Cardtronics on 10 of the 17 factors compared between the two stocks.

Cardtronics Company Profile

Cardtronics plc, formerly Cardtronics, Inc., provides automated consumer financial services through its network of automated teller machines (ATMS) and multi-function financial services kiosks. The Company’s operations consists of its North America, Europe, and Corporate & Other segments. Its ATM operations in the United States, Canada, Mexico and Puerto Rico are included in its North America segment. Its ATM operations in the United Kingdom, Ireland, Germany, Poland, Spain and i-design are included in its Europe segment. Its transaction processing operations, which service its North American and European operations, along with external customers, and the Company’s corporate general and administrative functions comprise the Corporate & Other segment. As of December 31, 2016, it provided services to approximately 203,000 ATMs throughout the United States (including the United States territory of Puerto Rico), the United Kingdom, Ireland, Germany, Poland, Spain, Canada and Mexico.

Brady Company Profile

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.

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