TrueBlue (NYSE:TBI) and Tradeweb Markets (NASDAQ:TW) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.
Volatility and Risk
TrueBlue has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Tradeweb Markets has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.
Profitability
This table compares TrueBlue and Tradeweb Markets' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
TrueBlue | -7.36% | 3.97% | 1.83% |
Tradeweb Markets | 17.80% | 5.82% | 5.19% |
Valuation and Earnings
This table compares TrueBlue and Tradeweb Markets' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
TrueBlue | $2.37 billion | 0.31 | $63.07 million | $2.05 | 10.16 |
Tradeweb Markets | $775.57 million | 21.37 | $126.12 million | $0.69 | 105.49 |
Tradeweb Markets has lower revenue, but higher earnings than TrueBlue. TrueBlue is trading at a lower price-to-earnings ratio than Tradeweb Markets, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
90.7% of TrueBlue shares are held by institutional investors. Comparatively, 40.6% of Tradeweb Markets shares are held by institutional investors. 2.0% of TrueBlue shares are held by insiders. Comparatively, 1.2% of Tradeweb Markets shares are held by 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.
Analyst Ratings
This is a summary of current recommendations and price targets for TrueBlue and Tradeweb Markets, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
TrueBlue | 0 | 4 | 1 | 0 | 2.20 |
Tradeweb Markets | 0 | 6 | 7 | 0 | 2.54 |
TrueBlue currently has a consensus target price of $18.75, suggesting a potential downside of 9.99%. Tradeweb Markets has a consensus target price of $63.6818, suggesting a potential downside of 12.51%. Given TrueBlue's higher probable upside, equities analysts plainly believe TrueBlue is more favorable than Tradeweb Markets.
Summary
Tradeweb Markets beats TrueBlue on 8 of the 14 factors compared between the two stocks.