Liberty Tax (OTCMKTS: TAXA) is one of 25 publicly-traded companies in the “Patent owners & lessors” industry, but how does it compare to its rivals? We will compare Liberty Tax to similar companies based on the strength of its analyst recommendations, institutional ownership, dividends, valuation, earnings, profitability and risk.

Risk and Volatility

Liberty Tax has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Liberty Tax’s rivals have a beta of 1.85, suggesting that their average share price is 85% more volatile than the S&P 500.

Insider and Institutional Ownership

44.3% of Liberty Tax shares are held by institutional investors. Comparatively, 36.5% of shares of all “Patent owners & lessors” companies are held by institutional investors. 15.3% of Liberty Tax shares are held by company insiders. Comparatively, 18.5% of shares of all “Patent owners & lessors” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Liberty Tax and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Tax 0 0 0 0 N/A
Liberty Tax Competitors 92 314 614 12 2.53

As a group, “Patent owners & lessors” companies have a potential upside of 27.45%. Given Liberty Tax’s rivals higher probable upside, analysts plainly believe Liberty Tax has less favorable growth aspects than its rivals.

Profitability

This table compares Liberty Tax and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Tax 0.07% 0.43% 0.20%
Liberty Tax Competitors -143.79% -59.01% -42.05%

Dividends

Liberty Tax pays an annual dividend of $0.64 per share and has a dividend yield of 6.3%. Liberty Tax pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Patent owners & lessors” companies pay a dividend yield of 2.1% and pay out 33.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Liberty Tax and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Liberty Tax $174.87 million $130,000.00 15.78
Liberty Tax Competitors $185.18 million $7.71 million 3.85

Liberty Tax’s rivals have higher revenue and earnings than Liberty Tax. Liberty Tax is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Liberty Tax Company Profile

Liberty Tax, Inc., through its subsidiaries, provides tax preparation services in the United States and Canada. The company also facilitates refund-based tax settlement financial products, such as refund transfer products and personal income tax refund discounting, as well as provides an online digital Do-It-Yourself tax program in the United States. Its customers include taxpayers who, for reasons of complexity, convenience, or the need for prompt tax refunds, seek assisted tax preparation services. The company offers its products and services through a network of company-owned offices and franchised locations under the Liberty Tax, Liberty Tax Service, Liberty Income Tax, Liberty Canada, and SiempreTax+ brand names. The company was formerly known as JTH Holding, Inc. and changed its name to Liberty Tax, Inc. in July 2014. Liberty Tax, Inc. was founded in 1996 and is headquartered in Virginia Beach, Virginia.

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