Information Services Co. (ISV.TO) (TSE:ISV) and Ritchie Bros. Auctioneers (TSE:RBA) are both services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.
Valuation and Earnings
This table compares Information Services Co. (ISV.TO) and Ritchie Bros. Auctioneers' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Information Services Co. (ISV.TO) | C$135.65 million | 2.93 | C$20.30 million | C$1.16 | 19.61 |
Ritchie Bros. Auctioneers | C$1.38 billion | 5.49 | C$169.26 million | C$1.54 | 44.69 |
Ritchie Bros. Auctioneers has higher revenue and earnings than Information Services Co. (ISV.TO). Information Services Co. (ISV.TO) is trading at a lower price-to-earnings ratio than Ritchie Bros. Auctioneers, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Information Services Co. (ISV.TO) and Ritchie Bros. Auctioneers' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Information Services Co. (ISV.TO) | N/A | N/A | N/A |
Ritchie Bros. Auctioneers | N/A | N/A | N/A |
Dividends
Information Services Co. (ISV.TO) pays an annual dividend of C$0.80 per share and has a dividend yield of 3.5%. Ritchie Bros. Auctioneers pays an annual dividend of C$0.84 per share and has a dividend yield of 1.2%. Information Services Co. (ISV.TO) pays out 69.0% of its earnings in the form of a dividend. Ritchie Bros. Auctioneers pays out 54.5% 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.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Information Services Co. (ISV.TO) and Ritchie Bros. Auctioneers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Information Services Co. (ISV.TO) | 0 | 1 | 1 | 0 | 2.50 |
Ritchie Bros. Auctioneers | 0 | 2 | 1 | 0 | 2.33 |
Information Services Co. (ISV.TO) presently has a consensus price target of C$20.69, indicating a potential downside of 9.07%. Ritchie Bros. Auctioneers has a consensus price target of C$63.00, indicating a potential downside of 8.47%. Given Ritchie Bros. Auctioneers' higher probable upside, analysts clearly believe Ritchie Bros. Auctioneers is more favorable than Information Services Co. (ISV.TO).
Summary
Ritchie Bros. Auctioneers beats Information Services Co. (ISV.TO) on 7 of the 9 factors compared between the two stocks.