Serco Group (SRP) Competitors

Capita (LON:CPI) and Serco Group (LON:SRP) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their media sentiment, community ranking, valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Does the MarketBeat Community favor CPI or SRP?

Capita received 22 more outperform votes than Serco Group when rated by MarketBeat users. Likewise, 52.89% of users gave Capita an outperform vote while only 48.53% of users gave Serco Group an outperform vote.

Company	Underperform	Outperform
Capita	Outperform Votes 467 52.89%	Underperform Votes 416 47.11%
Serco Group	Outperform Votes 445 48.53%	Underperform Votes 472 51.47%

Which has better valuation and earnings, CPI or SRP?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capita	£2.48B	1.52	-£40.73M	-£2.41	-92.19
Serco Group	£4.54B	0.42	£130.15M	£12.84	14.55

Does the media prefer CPI or SRP?

In the previous week, Serco Group had 4 more articles in the media than Capita. MarketBeat recorded 5 mentions for Serco Group and 1 mentions for Capita. Serco Group's average media sentiment score of 0.88 beat Capita's score of 0.59 indicating that Serco Group is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Capita	0 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Serco Group	2 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals and insiders have more ownership in CPI or SRP?

61.7% of Capita shares are held by institutional investors. Comparatively, 74.7% of Serco Group shares are held by institutional investors. 4.6% of Capita shares are held by company insiders. Comparatively, 1.7% of Serco Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Is CPI or SRP a better dividend stock?

Capita pays an annual dividend of GBX 32 per share and has a dividend yield of 14.4%. Serco Group pays an annual dividend of GBX 4 per share and has a dividend yield of 2.1%. Capita pays out -1,325.3% of its earnings in the form of a dividend. Serco Group pays out 31.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Capita is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has more risk and volatility, CPI or SRP?

Capita has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500. Comparatively, Serco Group has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Do analysts prefer CPI or SRP?

Capita currently has a consensus target price of GBX 2,200, suggesting a potential upside of 888.32%. Serco Group has a consensus target price of GBX 205, suggesting a potential upside of 9.74%. Given Capita's higher probable upside, equities research analysts clearly believe Capita is more favorable than Serco Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capita	0 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00
Serco Group	0 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.33

Is CPI or SRP more profitable?

Serco Group has a net margin of 2.87% compared to Capita's net margin of -1.64%. Serco Group's return on equity of 13.70% beat Capita's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Capita	-1.64%	-28.00%	1.57%
Serco Group	2.87%	13.70%	4.45%

Summary

Serco Group beats Capita on 12 of the 20 factors compared between the two stocks.