Laurentian Bank of Canada (TSE:LB) and Element Fleet Management Corp. (EFN.TO) (TSE:EFN) are both financial services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Analyst Ratings
This is a summary of current ratings and recommmendations for Laurentian Bank of Canada and Element Fleet Management Corp. (EFN.TO), as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Laurentian Bank of Canada | 3 | 3 | 0 | 0 | 1.50 |
Element Fleet Management Corp. (EFN.TO) | 0 | 1 | 4 | 0 | 2.80 |
Laurentian Bank of Canada currently has a consensus price target of C$31.28, indicating a potential downside of 11.64%. Element Fleet Management Corp. (EFN.TO) has a consensus price target of C$15.57, indicating a potential upside of 23.19%. Given Element Fleet Management Corp. (EFN.TO)'s stronger consensus rating and higher possible upside, analysts plainly believe Element Fleet Management Corp. (EFN.TO) is more favorable than Laurentian Bank of Canada.
Valuation and Earnings
This table compares Laurentian Bank of Canada and Element Fleet Management Corp. (EFN.TO)'s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Laurentian Bank of Canada | C$854.71 million | 1.79 | C$102.39 million | C$2.37 | 14.97 |
Element Fleet Management Corp. (EFN.TO) | C$1.43 billion | 3.88 | C$48.44 million | C$0.11 | 114.91 |
Laurentian Bank of Canada has higher earnings, but lower revenue than Element Fleet Management Corp. (EFN.TO). Laurentian Bank of Canada is trading at a lower price-to-earnings ratio than Element Fleet Management Corp. (EFN.TO), indicating that it is currently the more affordable of the two stocks.
Dividends
Laurentian Bank of Canada pays an annual dividend of C$2.14 per share and has a dividend yield of 6.0%. Element Fleet Management Corp. (EFN.TO) pays an annual dividend of C$0.18 per share and has a dividend yield of 1.4%. Laurentian Bank of Canada pays out 90.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Element Fleet Management Corp. (EFN.TO) pays out 163.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Laurentian Bank of Canada is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Laurentian Bank of Canada and Element Fleet Management Corp. (EFN.TO)'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Laurentian Bank of Canada | N/A | N/A | N/A |
Element Fleet Management Corp. (EFN.TO) | N/A | N/A | N/A |
Summary
Element Fleet Management Corp. (EFN.TO) beats Laurentian Bank of Canada on 6 of the 10 factors compared between the two stocks.