B&M European Value Retail (OTCMKTS:BMRRY) and Ashtead Group (OTCMKTS:ASHTY) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.
Valuation and Earnings
This table compares B&M European Value Retail and Ashtead Group's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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B&M European Value Retail | $4.85 billion | 1.65 | $114.46 million | $1.03 | 31.01 |
Ashtead Group | $5.84 billion | 5.04 | $936.90 million | $8.83 | 29.65 |
Ashtead Group has higher revenue and earnings than B&M European Value Retail. Ashtead Group is trading at a lower price-to-earnings ratio than B&M European Value Retail, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares B&M European Value Retail and Ashtead Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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B&M European Value Retail | N/A | N/A | N/A |
Ashtead Group | 13.37% | 24.20% | 7.02% |
Analyst Ratings
This is a breakdown of current ratings for B&M European Value Retail and Ashtead Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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B&M European Value Retail | 0 | 7 | 3 | 0 | 2.30 |
Ashtead Group | 0 | 7 | 6 | 0 | 2.46 |
Volatility and Risk
B&M European Value Retail has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Ashtead Group has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.
Insider & Institutional Ownership
0.0% of B&M European Value Retail shares are owned by institutional investors. Comparatively, 0.8% of Ashtead Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Dividends
B&M European Value Retail pays an annual dividend of $0.30 per share and has a dividend yield of 0.9%. Ashtead Group pays an annual dividend of $0.69 per share and has a dividend yield of 0.3%. B&M European Value Retail pays out 29.1% of its earnings in the form of a dividend. Ashtead Group pays out 7.8% 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.
Summary
Ashtead Group beats B&M European Value Retail on 13 of the 14 factors compared between the two stocks.