Harsco (NYSE: HSC) and G4S (OTCMKTS:GFSZY) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.
Institutional and Insider Ownership
84.1% of Harsco shares are owned by institutional investors. Comparatively, 0.1% of G4S shares are owned by institutional investors. 0.8% of Harsco shares are owned by company 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.
This is a summary of recent ratings and recommmendations for Harsco and G4S, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Harsco currently has a consensus target price of $24.50, suggesting a potential upside of 14.22%. G4S has a consensus target price of $22.00, suggesting a potential upside of 29.76%. Given G4S’s higher probable upside, analysts clearly believe G4S is more favorable than Harsco.
Earnings and Valuation
This table compares Harsco and G4S’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Harsco||$1.61 billion||1.07||$7.82 million||$0.09||238.33|
|G4S||$10.29 billion||0.51||$268.34 million||N/A||N/A|
G4S has higher revenue and earnings than Harsco.
G4S pays an annual dividend of $0.53 per share and has a dividend yield of 3.1%. Harsco does not pay a dividend.
This table compares Harsco and G4S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Harsco has a beta of 2.68, indicating that its stock price is 168% more volatile than the S&P 500. Comparatively, G4S has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.
Harsco beats G4S on 9 of the 13 factors compared between the two stocks.
Harsco Corporation provides industrial services and engineered products worldwide. The company operates in three segments: Harsco Metals & Minerals, Harsco Industrial, and Harsco Rail. The Harsco Metals & Minerals segment provides on-site services of material logistics, product quality improvement, and resource recovery for iron, steel, and metals manufacturing; and value added environmental solutions for industrial co-products, as well as produces industrial abrasives and roofing granules. The Harsco Industrial segment manufactures and supplies custom-engineered and manufactured air-cooled heat exchangers for the natural gas, natural gas processing, and petrochemical industries; industrial grating products, such as metal bar grating configurations for industrial flooring, and safety and security applications in the energy, paper, chemical, refining, and processing industries. It also offers heat transfer products, such as boilers and water heaters for commercial and institutional applications; and high-security fencing products. The Harsco Rail segment designs and manufactures safety systems for transportation and industrial applications; and equipment, after-market parts, and services for the maintenance, repair, and construction of railway track. It serves private and government-owned railroads, and urban mass transit systems. Harsco Corporation was founded in 1853 and is headquartered in Camp Hill, Pennsylvania.
G4S plc, together with its subsidiaries, engages in the provision of security and related services in the United Kingdom, Ireland, Africa, Asia, the Middle East, Latin America, Europe, and North America. The company offers integrated solutions, including analytics and intelligence, technology and software, consulting and risk management, monitoring and response, and manned and mobile security, as well as design, built, and integration systems. In addition, the company offers cash solutions, such as outsourcing cash management services; consultancy services to central banks and commercial banks on overall cash management strategy and cash cycle efficiency; managing ATMs; cash management services; and secure transportation of cash. Further, G4S plc provides specialist outsourced services, and security systems and technology services. It serves government, private energy and utilities, oil and gas, transportation and logistics, ports and airports, leisure and tourism, financial institutions, mining and metals, corporate and industrial, and retail sectors. G4S plc was founded in 1901 and is based in London, United Kingdom.
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