Head-To-Head Comparison: Liberty Tax (TAXA) vs. Its Rivals

Liberty Tax (OTCMKTS: TAXA) is one of 25 publicly-traded companies in the “Patent owners & lessors” industry, but how does it contrast to its peers? We will compare Liberty Tax to related companies based on the strength of its risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Valuation and Earnings

This table compares Liberty Tax and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Liberty Tax $174.87 million $130,000.00 15.78
Liberty Tax Competitors $185.18 million $7.71 million 3.85

Liberty Tax’s peers have higher revenue and earnings than Liberty Tax. Liberty Tax is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Liberty Tax and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Tax 0.07% 0.43% 0.20%
Liberty Tax Competitors -143.71% -59.13% -42.12%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Liberty Tax and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Tax 0 0 0 0 N/A
Liberty Tax Competitors 92 314 614 12 2.53

As a group, “Patent owners & lessors” companies have a potential upside of 27.45%. Given Liberty Tax’s peers higher probable upside, analysts clearly believe Liberty Tax has less favorable growth aspects than its peers.

Insider and Institutional Ownership

44.3% of Liberty Tax shares are held by institutional investors. Comparatively, 36.5% of shares of all “Patent owners & lessors” companies are held by institutional investors. 15.3% of Liberty Tax shares are held by company insiders. Comparatively, 18.5% of shares of all “Patent owners & lessors” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Liberty Tax has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Liberty Tax’s peers have a beta of 1.85, indicating that their average stock price is 85% more volatile than the S&P 500.

Dividends

Liberty Tax pays an annual dividend of $0.64 per share and has a dividend yield of 6.3%. Liberty Tax pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Patent owners & lessors” companies pay a dividend yield of 2.1% and pay out 33.6% of their earnings in the form of a dividend.

Liberty Tax Company Profile

Liberty Tax, Inc., through its subsidiaries, provides tax preparation services in the United States and Canada. The company also facilitates refund-based tax settlement financial products, such as refund transfer products and personal income tax refund discounting, as well as provides an online digital Do-It-Yourself tax program in the United States. Its customers include taxpayers who, for reasons of complexity, convenience, or the need for prompt tax refunds, seek assisted tax preparation services. The company offers its products and services through a network of company-owned offices and franchised locations under the Liberty Tax, Liberty Tax Service, Liberty Income Tax, Liberty Canada, and SiempreTax+ brand names. The company was formerly known as JTH Holding, Inc. and changed its name to Liberty Tax, Inc. in July 2014. Liberty Tax, Inc. was founded in 1996 and is headquartered in Virginia Beach, Virginia.

Receive News & Ratings for Liberty Tax Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Liberty Tax and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply