Comparing Barloworld (BRRAY) and Raven Industries (RAVN)

Barloworld (OTCMKTS: BRRAY) and Raven Industries (NASDAQ:RAVN) are both multi-sector conglomerates companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Dividends

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Barloworld pays an annual dividend of $0.21 per share and has a dividend yield of 1.4%. Raven Industries pays an annual dividend of $0.52 per share and has a dividend yield of 1.5%. Barloworld pays out 29.2% of its earnings in the form of a dividend. Raven Industries pays out 45.6% 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.

Earnings and Valuation

This table compares Barloworld and Raven Industries’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Barloworld $4.63 billion 0.67 $122.89 million $0.72 20.32
Raven Industries $377.32 million 3.35 $41.02 million $1.14 30.96

Barloworld has higher revenue and earnings than Raven Industries. Barloworld is trading at a lower price-to-earnings ratio than Raven Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Barloworld and Raven Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barloworld N/A N/A N/A
Raven Industries 10.87% 15.29% 12.98%

Risk and Volatility

Barloworld has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500. Comparatively, Raven Industries has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Insider and Institutional Ownership

75.2% of Raven Industries shares are owned by institutional investors. 1.8% of Raven Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Barloworld and Raven Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barloworld 0 0 0 0 N/A
Raven Industries 0 1 2 0 2.67

Raven Industries has a consensus target price of $35.00, indicating a potential downside of 0.85%. Given Raven Industries’ higher possible upside, analysts clearly believe Raven Industries is more favorable than Barloworld.

Summary

Raven Industries beats Barloworld on 11 of the 15 factors compared between the two stocks.

About Barloworld

Barloworld Limited is a distributor of international brands providing integrated rental, fleet management, product support and logistics solutions. The Company’s segments are Equipment, Handling, Automotive, Logistics and Corporate. The Equipment segment provides customers with solutions that include Caterpillar earthmoving equipment, engines and other complementary brands. The Handling segment provides customers with solutions for material handling needs that include lift trucks, warehouse handling equipment and distribution of agricultural equipment. The Automotive segment provides customers with motor vehicle usage solutions through the operation of car rental, motor retail and fleet service business units. The Logistics segment provides customers with traditional logistics services and supply chain management solutions. The Corporate segment comprises all other activities, including the operations of the corporate office in Johannesburg and treasury in the United Kingdom.

About Raven Industries

Raven Industries, Inc. is a diversified technology company providing a range of products to customers within the industrial, agricultural, energy, construction and defense markets. The Company operates through three segments: Applied Technology Division (Applied Technology), Engineered Films Division (Engineered Films) and Aerostar Division (Aerostar). The Applied Technology segment designs, manufactures, sells and services precision agriculture products and information management tools for growers. The Engineered Films segment produces plastic films and sheeting for energy, agricultural, construction, geomembrane and industrial applications. The Aerostar segment designs and manufactures products, including balloons, tethered aerostats and radar processing systems. It conducts business through its subsidiaries, including Aerostar International, Inc. (Aerostar), Vista Research, Inc. (Vista), Raven International Holding Company BV (Raven Holdings) and Raven Industries Canada, Inc.

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