Brink’s (NYSE: BCO) and Expeditors International of Washington (NASDAQ:EXPD) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Brink’s pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. Expeditors International of Washington pays an annual dividend of $0.84 per share and has a dividend yield of 1.4%. Brink’s pays out 19.8% of its earnings in the form of a dividend. Expeditors International of Washington pays out 33.9% 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. Expeditors International of Washington has increased its dividend for 23 consecutive years. Expeditors International of Washington is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Brink’s and Expeditors International of Washington’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Expeditors International of Washington||7.07%||22.79%||14.87%|
Volatility and Risk
Brink’s has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, Expeditors International of Washington has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Brink’s and Expeditors International of Washington, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Expeditors International of Washington||1||6||1||0||2.00|
Brink’s presently has a consensus target price of $98.00, indicating a potential upside of 31.46%. Expeditors International of Washington has a consensus target price of $62.57, indicating a potential upside of 0.61%. Given Brink’s’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Brink’s is more favorable than Expeditors International of Washington.
Insider & Institutional Ownership
93.1% of Brink’s shares are owned by institutional investors. Comparatively, 91.7% of Expeditors International of Washington shares are owned by institutional investors. 2.5% of Brink’s shares are owned by company insiders. Comparatively, 0.8% of Expeditors International of Washington shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Brink’s and Expeditors International of Washington’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brink’s||$3.35 billion||1.13||$16.70 million||$3.03||24.60|
|Expeditors International of Washington||$6.92 billion||1.57||$489.34 million||$2.48||25.08|
Expeditors International of Washington has higher revenue and earnings than Brink’s. Brink’s is trading at a lower price-to-earnings ratio than Expeditors International of Washington, indicating that it is currently the more affordable of the two stocks.
Brink’s beats Expeditors International of Washington on 9 of the 17 factors compared between the two stocks.
The Brink's Company provides secure transportation, cash management, and other security-related services worldwide. The company offers cash-in-transit services, including armored vehicle transportation of valuables; automated teller machine (ATM) services, such as cash replenishment, replenishment forecasting, cash optimization, ATM remote monitoring, service call dispatching, transaction processing, installation, and first and second line maintenance; and network infrastructure services. It also provides transportation services for valued commodities, including diamonds, jewelry, precious metals, securities, currency, high-tech devices, electronics, and pharmaceuticals; and cash management services, such as money processing, deploying and servicing intelligent safes and safe control devices, and check imaging, as well as cashier balancing, counterfeit detection, account consolidation, and electronic reporting services. In addition, the company offers payment services, including bill payment processing, mobile phone top-up, and prepaid cards; and commercial security system services, such as security system design and installation services that include alarms, motion detectors, closed-circuit televisions, and digital video recorders, as well as access control systems comprising card and biometric readers, electronic locks, and turnstiles. Further, it provides security and guarding services to protect airports, offices, warehouses, stores, and public venues. The company serves banks and financial institutions, retailers, government agencies, mints, jewelers, and other commercial operations. The company was formerly known as The Pittston Company and changed its name to The Brink's Company in May 2003. The Brink's Company was founded in 1838 and is headquartered in Richmond, Virginia.
About Expeditors International of Washington
Expeditors International of Washington, Inc. provides logistics services in the Americas, North Asia, South Asia, Europe, the Middle East, Africa, and India. The company offers airfreight services, such as air freight consolidation and forwarding; ocean freight and ocean services, such as ocean freight consolidation, direct ocean forwarding, and order management; customs brokerage, intra-continental ground transportation and delivery, and warehousing and distribution services; and customs clearance, purchase order management, vendor consolidation, time-definite transportation services, cargo insurance, cargo monitoring and tracking, and other logistics solutions. It acts as a freight consolidator or as an agent for the airline, which carries the shipment. The company also provides ancillary services that include preparation of shipping and customs documentation, packing, crating, insurance services, negotiation of letters of credit, and the preparation of documentation to comply with local export laws. Its customers include retailing and wholesaling, electronics, and industrial and manufacturing companies. Expeditors International of Washington, Inc. was founded in 1979 and is headquartered in Seattle, Washington.
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