Serco Group (SRP) Competitors

Mitie Group (LON:MTO) and Serco Group (LON:SRP) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, community ranking, profitability, earnings, risk, analyst recommendations and media sentiment.

Which has preferable valuation and earnings, MTO or SRP?

Serco Group has lower revenue, but higher earnings than Mitie Group. Serco Group is trading at a lower price-to-earnings ratio than Mitie 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
Mitie Group	£4.80B	0.39	£120.92M	£9.62	15.30
Serco Group	£4.54B	0.39	£130.15M	£12.84	13.76

Does the media refer more to MTO or SRP?

In the previous week, Serco Group had 2 more articles in the media than Mitie Group. MarketBeat recorded 3 mentions for Serco Group and 1 mentions for Mitie Group. Serco Group's average media sentiment score of 0.45 beat Mitie Group's score of 0.24 indicating that Serco Group is being referred to more favorably in the news media.

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

Is MTO or SRP more profitable?

Serco Group has a net margin of 2.87% compared to Mitie Group's net margin of 2.52%. Mitie Group's return on equity of 28.24% beat Serco Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Mitie Group	2.52%	28.24%	5.94%
Serco Group	2.87%	13.70%	4.45%

Does the MarketBeat Community believe in MTO or SRP?

Serco Group received 59 more outperform votes than Mitie Group when rated by MarketBeat users. However, 51.47% of users gave Mitie Group an outperform vote while only 48.53% of users gave Serco Group an outperform vote.

Company	Underperform	Outperform
Mitie Group	Outperform Votes 386 51.47%	Underperform Votes 364 48.53%
Serco Group	Outperform Votes 445 48.53%	Underperform Votes 472 51.47%

Do analysts recommend MTO or SRP?

Mitie Group currently has a consensus price target of GBX 155, suggesting a potential upside of 5.30%. Serco Group has a consensus price target of GBX 205, suggesting a potential upside of 16.08%. Given Serco Group's higher probable upside, analysts plainly believe Serco Group is more favorable than Mitie Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitie Group	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00
Serco Group	0 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.33

Do insiders & institutionals have more ownership in MTO or SRP?

78.0% of Mitie Group shares are owned by institutional investors. Comparatively, 74.7% of Serco Group shares are owned by institutional investors. 5.7% of Mitie Group shares are owned by insiders. Comparatively, 1.7% of Serco Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Is MTO or SRP a better dividend stock?

Mitie Group pays an annual dividend of GBX 4 per share and has a dividend yield of 2.7%. Serco Group pays an annual dividend of GBX 4 per share and has a dividend yield of 2.3%. Mitie Group pays out 41.6% 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.

Which has more risk and volatility, MTO or SRP?

Mitie Group has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Serco Group has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Summary

Mitie Group beats Serco Group on 11 of the 20 factors compared between the two stocks.