Macquarie Infrastructure (NYSE: MIC) and BEST (NYSE:BSTI) are both mid-cap multi-sector conglomerates companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Insider and Institutional Ownership

76.4% of Macquarie Infrastructure shares are owned by institutional investors. Comparatively, 13.3% of BEST shares are owned by institutional investors. 5.9% of Macquarie Infrastructure shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Macquarie Infrastructure and BEST’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Macquarie Infrastructure $1.65 billion 3.38 $156.38 million $2.13 30.97
BEST $1.30 billion 2.57 -$201.12 million N/A N/A

Macquarie Infrastructure has higher revenue and earnings than BEST.

Dividends

Macquarie Infrastructure pays an annual dividend of $5.68 per share and has a dividend yield of 8.6%. BEST does not pay a dividend. Macquarie Infrastructure pays out 266.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macquarie Infrastructure has increased its dividend for 5 consecutive years.

Profitability

This table compares Macquarie Infrastructure and BEST’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macquarie Infrastructure 9.82% 5.66% 2.28%
BEST N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for Macquarie Infrastructure and BEST, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macquarie Infrastructure 0 1 2 0 2.67
BEST 0 0 8 0 3.00

Macquarie Infrastructure currently has a consensus target price of $83.67, indicating a potential upside of 26.83%. BEST has a consensus target price of $14.92, indicating a potential upside of 63.96%. Given BEST’s stronger consensus rating and higher probable upside, analysts clearly believe BEST is more favorable than Macquarie Infrastructure.

Summary

Macquarie Infrastructure beats BEST on 10 of the 14 factors compared between the two stocks.

About Macquarie Infrastructure

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.

About BEST

BEST Inc. is engaged in providing supply chain solutions. The Company offers a cloud based platform, BEST Cloud which is integration of online and offline retail to offer delivery. It provides technology-enabled solutions to its users. The Company’s service offerings include BEST supply chain management, BEST express, BEST freight, BEST store+, BEST global, BEST cargo and BEST Ucargo. BEST supply chain management offers its solutions in a range of categories, including: cloud OFCs, which offer warehouse management, in-warehouse processing and order fulfillment services to customers; transportation services, which provides transportation services and coordinate shipments to and from locations. It offer transportation services from factories to consumers includes full truckload (FTL), less-than-truckload (LTL), regional distribution, intra-city distribution and other transportation services. BEST store+ offers a door-to-door integrated cross-border supply chain services.

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