Scope Industries (OTCMKTS:SCPJ) and ACCO Brands (NYSE:ACCO) are both small-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.
Dividends
Scope Industries pays an annual dividend of $7.00 per share and has a dividend yield of 2.7%. ACCO Brands pays an annual dividend of $0.26 per share and has a dividend yield of 3.1%. ACCO Brands pays out 21.7% of its earnings in the form of a dividend. ACCO Brands has raised its dividend for 1 consecutive years. ACCO Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Scope Industries and ACCO Brands' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Scope Industries | N/A | N/A | N/A | N/A | N/A |
| ACCO Brands | $1.96 billion | 0.41 | $106.80 million | $1.20 | 6.93 |
ACCO Brands has higher revenue and earnings than Scope Industries.
Profitability
This table compares Scope Industries and ACCO Brands' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Scope Industries | N/A | N/A | N/A |
| ACCO Brands | 4.37% | 11.20% | 3.01% |
Risk and Volatility
Scope Industries has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, ACCO Brands has a beta of 2.29, suggesting that its share price is 129% more volatile than the S&P 500.
Institutional & Insider Ownership
88.2% of ACCO Brands shares are owned by institutional investors. 68.1% of Scope Industries shares are owned by insiders. Comparatively, 5.8% of ACCO Brands shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Scope Industries and ACCO Brands, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Scope Industries | 0 | 0 | 0 | 0 | N/A |
| ACCO Brands | 0 | 0 | 2 | 0 | 3.00 |
ACCO Brands has a consensus price target of $12.00, indicating a potential upside of 44.23%. Given ACCO Brands' higher possible upside, analysts plainly believe ACCO Brands is more favorable than Scope Industries.
Summary
ACCO Brands beats Scope Industries on 10 of the 12 factors compared between the two stocks.
