UniFirst (NYSE: UNF) and Higher One (NYSE:ONE) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Dividends

UniFirst pays an annual dividend of $0.15 per share and has a dividend yield of 0.1%. Higher One does not pay a dividend. UniFirst pays out 4.0% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares UniFirst and Higher One’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UniFirst $1.59 billion 2.17 $70.19 million $3.74 45.47
Higher One N/A N/A N/A ($0.62) -8.31

UniFirst has higher revenue and earnings than Higher One. Higher One is trading at a lower price-to-earnings ratio than UniFirst, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares UniFirst and Higher One’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UniFirst 4.69% 7.72% 6.21%
Higher One -26.77% -16.36% -10.01%

Risk and Volatility

UniFirst has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Higher One has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

Insider and Institutional Ownership

74.1% of UniFirst shares are held by institutional investors. 1.0% of UniFirst shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for UniFirst and Higher One, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UniFirst 0 2 1 0 2.33
Higher One 0 0 0 0 N/A

UniFirst currently has a consensus price target of $171.00, suggesting a potential upside of 0.56%. Given UniFirst’s higher probable upside, equities research analysts clearly believe UniFirst is more favorable than Higher One.

Summary

UniFirst beats Higher One on 11 of the 13 factors compared between the two stocks.

UniFirst Company Profile

UniFirst Corporation is a provider of workplace uniforms and protective work wear clothing in the United States. The Company designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, aprons and specialized protective wear, such as flame resistant and high visibility garments. It operates in six segments: the US Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing (MFG), Specialty Garments Rental and Cleaning (Specialty Garments), First Aid and Corporate. The Company also rents and sells industrial wiping products, floor mats, facility service products and other non-garment items, and provides restroom and cleaning supplies and first aid cabinet services, and other safety supplies. It also decontaminates and cleans work clothes, which has been exposed to radioactive materials and service special cleanroom protective wear and facilities.

Higher One Company Profile

Higher One Holdings, Inc. is a provider of technology-based payment processing and refund disbursement services to higher education institutions and their students. The Company also provides campus communities with student-oriented banking services, which include user-friendly features, through its bank partners. The Company operates through two segments: Disbursements and Payments. The Disbursements segment includes its Refund Management disbursement service, which is offered to higher education institution clients, and the OneAccount, a Federal Deposit Insurance Corporation (FDIC)-insured online checking account that is offered to students, as well as faculty, staff and alumni. The Payments segment includes its CASHNet payment processing suite and its Campus Solutions suite, both of which enable higher education institutions to accept online payments, automate certain billing and processing functions, and offer tuition payment plans.

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