Stagecoach Group (LON:SGC) and Bodycote (LON:BOY) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Earnings & Valuation
This table compares Stagecoach Group and Bodycote's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Stagecoach Group | £1.07 billion | 0.52 | N/A | GBX (2.70) | -37.19 |
Bodycote | £598 million | 2.74 | N/A | GBX 0.20 | 4,277.50 |
Stagecoach Group is trading at a lower price-to-earnings ratio than Bodycote, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Stagecoach Group and Bodycote's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Stagecoach Group | N/A | N/A | N/A |
Bodycote | N/A | N/A | N/A |
Dividends
Stagecoach Group pays an annual dividend of GBX 0.04 per share and has a dividend yield of 0.0%. Bodycote pays an annual dividend of GBX 0.19 per share and has a dividend yield of 0.0%. Stagecoach Group pays out -1.4% of its earnings in the form of a dividend. Bodycote pays out 96.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stagecoach Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of current recommendations and price targets for Stagecoach Group and Bodycote, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Stagecoach Group | 1 | 0 | 7 | 0 | 2.75 |
Bodycote | 3 | 3 | 5 | 0 | 2.18 |
Stagecoach Group presently has a consensus price target of GBX 86.38, suggesting a potential downside of 13.97%. Bodycote has a consensus price target of GBX 646.25, suggesting a potential downside of 24.46%. Given Stagecoach Group's stronger consensus rating and higher possible upside, research analysts plainly believe Stagecoach Group is more favorable than Bodycote.
Summary
Stagecoach Group beats Bodycote on 6 of the 9 factors compared between the two stocks.