Reviewing Willdan Group (WLDN) and Alliance Data Systems Corporation (ADS)
Willdan Group (NASDAQ: WLDN) and Alliance Data Systems Corporation (NYSE:ADS) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.
Earnings & Valuation
This table compares Willdan Group and Alliance Data Systems Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Willdan Group||$256.27 million||0.99||$15.86 million||$1.12||26.18|
|Alliance Data Systems Corporation||$7.41 billion||1.71||$1.47 billion||$8.78||26.06|
Alliance Data Systems Corporation has higher revenue and earnings than Willdan Group. Alliance Data Systems Corporation is trading at a lower price-to-earnings ratio than Willdan Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
57.2% of Willdan Group shares are held by institutional investors. Comparatively, 96.0% of Alliance Data Systems Corporation shares are held by institutional investors. 13.3% of Willdan Group shares are held by company insiders. Comparatively, 2.6% of Alliance Data Systems Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations for Willdan Group and Alliance Data Systems Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alliance Data Systems Corporation||3||7||8||0||2.28|
Willdan Group currently has a consensus target price of $37.67, indicating a potential upside of 28.47%. Alliance Data Systems Corporation has a consensus target price of $252.33, indicating a potential upside of 10.30%. Given Willdan Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Willdan Group is more favorable than Alliance Data Systems Corporation.
Alliance Data Systems Corporation pays an annual dividend of $2.08 per share and has a dividend yield of 0.9%. Willdan Group does not pay a dividend. Alliance Data Systems Corporation pays out 23.7% of its earnings in the form of a dividend.
This table compares Willdan Group and Alliance Data Systems Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alliance Data Systems Corporation||6.77%||59.67%||3.74%|
Volatility & Risk
Willdan Group has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Alliance Data Systems Corporation has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.
Alliance Data Systems Corporation beats Willdan Group on 10 of the 16 factors compared between the two stocks.
About Willdan Group
Willdan Group, Inc. is a holding company. The Company provides professional technical and consulting services to utilities, private industry and public agencies at all levels of government, primarily in California and New York. It operates through four segments: Energy Efficiency Services, Engineering Services, Public Finance Services and Homeland Security Services. The Energy Efficiency Services segment provides energy efficiency consulting services to utilities, state agencies, municipalities, private industry and non-profit organizations. The Engineering Services segment offers a range of engineering and planning services to its public and private sector clients. The Public Finance Services segment provides support for the various financing techniques employed by public agencies to finance their operations and infrastructure. The Homeland Security Services segment provides national preparedness, homeland security consulting, public safety and emergency response services.
About Alliance Data Systems Corporation
Alliance Data Systems Corporation is a provider of data-driven marketing and loyalty solutions serving consumer-based businesses in a range of industries. The Company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs. The Company operates through three segments: LoyaltyOne, which provides coalition and short-term loyalty programs through the Company’s Canadian AIR MILES Reward Program and BrandLoyalty Group B.V. (BrandLoyalty); Epsilon, which provides end-to-end, integrated direct marketing solutions, and Card Services, which provides risk management solutions, account origination, funding, transaction processing, customer care, collections and marketing services for the Company’s private label and co-brand retail credit card programs.
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