Critical Survey: Element Fleet Management (ELEEF) versus Its Rivals

Element Fleet Management (OTCMKTS:ELEEF) is one of 355 public companies in the “Commercial Services & Supplies” industry, but how does it contrast to its peers? We will compare Element Fleet Management to similar companies based on the strength of its valuation, earnings, analyst recommendations, risk, profitability, institutional ownership and dividends.

Profitability

This table compares Element Fleet Management and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Element Fleet Management	23.33%	26.81%	3.88%
Element Fleet Management Competitors	-60.93%	-129.15%	-1.45%

Insider & Institutional Ownership

39.6% of shares of all “Commercial Services & Supplies” companies are held by institutional investors. 16.7% of shares of all “Commercial Services & Supplies” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Element Fleet Management and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Element Fleet Management	$1.19 billion	$279.13 million	27.69
Element Fleet Management Competitors	$2.42 billion	$139.29 million	22.32

Element Fleet Management’s peers have higher revenue, but lower earnings than Element Fleet Management. Element Fleet Management is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings for Element Fleet Management and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Element Fleet Management	0	0	2	1	3.33
Element Fleet Management Competitors	1835	6116	9002	656	2.48

As a group, “Commercial Services & Supplies” companies have a potential upside of 10.76%. Given Element Fleet Management’s peers higher possible upside, analysts plainly believe Element Fleet Management has less favorable growth aspects than its peers.

Dividends

Element Fleet Management pays an annual dividend of $0.42 per share and has a dividend yield of 2.0%. Element Fleet Management pays out 56.8% of its earnings in the form of a dividend. As a group, “Commercial Services & Supplies” companies pay a dividend yield of 2.5% and pay out 64.3% of their earnings in the form of a dividend.

Summary

Element Fleet Management beats its peers on 9 of the 14 factors compared.

Element Fleet Management Company Profile

Element Fleet Management Corp. operates as a fleet management company primarily in Canada, Mexico, Australia, and New Zealand. The company offers end-to-end fleet cars, trucks, and material handling support equipment acquisition; and end-to-end electric vehicle fleet including fleet planning, charging infrastructure solutions, acquisition, financing, maintenance, and remarketing. It provides commercial fleet financing comprising operating and capital lease, sale and leaseback funding, loans, rental fleet financing, client owned acquisition program, and fair market value lease for fleet cars, trucks, and equipment; and vehicle licensing and registration services, such as renewal, fleet title management, and insurance card management services. In addition, the company provides collision management services, such as 24/7 driver assistance, collision evaluation, repair management, and subrogation; fleet management outsourcing solutions; fuel, maintenance, and safety solutions; telematics and fleet connectivity solutions; and toll and violation management, as well as fleet remarketing, sale leaseback, and strategic fleet management consulting services. It serves construction, energy, oil and gas, food and beverages, healthcare, services, and transport sectors. Element Fleet Management Corp. was incorporated in 2007 and is based in Toronto, Canada.