Brink's (NYSE: BCO) and Servicemaster Global (NYSE:SERV) are both mid-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Valuation & Earnings

This table compares Brink's and Servicemaster Global’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brink's $3.02 billion 1.40 $34.50 million $1.62 51.73
Servicemaster Global $2.75 billion 2.62 $155.00 million $1.73 30.76

Servicemaster Global has lower revenue, but higher earnings than Brink's. Servicemaster Global is trading at a lower price-to-earnings ratio than Brink's, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Brink's and Servicemaster Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brink's 2.51% 35.15% 6.53%
Servicemaster Global 8.16% 40.22% 5.42%

Analyst Recommendations

This is a summary of recent ratings and target prices for Brink's and Servicemaster Global, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brink's 0 0 3 0 3.00
Servicemaster Global 2 2 7 0 2.45

Brink's presently has a consensus price target of $92.67, indicating a potential upside of 10.58%. Servicemaster Global has a consensus price target of $48.73, indicating a potential downside of 8.44%. Given Brink's’ stronger consensus rating and higher possible upside, analysts clearly believe Brink's is more favorable than Servicemaster Global.

Insider and Institutional Ownership

90.6% of Brink's shares are owned by institutional investors. Comparatively, 100.0% of Servicemaster Global shares are owned by institutional investors. 10.4% of Brink's shares are owned by company insiders. Comparatively, 1.2% of Servicemaster Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Brink's has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500. Comparatively, Servicemaster Global has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Dividends

Brink's pays an annual dividend of $0.60 per share and has a dividend yield of 0.7%. Servicemaster Global does not pay a dividend. Brink's pays out 37.0% of its earnings in the form of a dividend.

Brink's Company Profile

The Brink’s Company (Brink’s) is a provider of logistics and security solutions. The Company operates through nine segments: U.S., France, Mexico, Brazil, Canada, Latin America, EMEA, Asia and Payment Services. The Company’s solutions include cash-in-transit (CIT), automated teller machine (ATM) replenishment and maintenance, cash management services, including vault outsourcing, money processing, and intelligent safe services, international transportation of valuables, and payment services. Its customers include financial institutions, retailers, government agencies (including central banks), mints, jewelers and other commercial operations around the world. As of December 31, 2016, the Company’s global network served customers in over 100 countries. Its services offerings include Core Services, High-Value Services and Other Security Services.

Servicemaster Global Company Profile

ServiceMaster Global Holdings, Inc. is a provider of essential residential and commercial services. The Company operates through three segments: Terminix, American Home Shield and the Franchise Services Group. Its portfolio of brands includes Terminix, American Home Shield, ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. The Terminix segment provides termite and pest control services in the United States. The American Home Shield segment provides home warranty plans that cover the repair or replacement of components of up to 21 household systems and appliances, including electrical, plumbing, central heating and air conditioning (HVAC) systems, dishwashers and ovens/cook tops. The Franchise Services Group segment consists of the ServiceMaster Restore (disaster restoration), ServiceMaster Clean (janitorial), Merry Maids (residential cleaning), Furniture Medic (cabinet and wood furniture repair) and AmeriSpec (home inspection) businesses.

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