Comparing Ritchie Bros. Auctioneers (NYSE:RBA) & Stamps.com (NYSE:STMP)
Ritchie Bros. Auctioneers (NYSE:RBA) and Stamps.com (NASDAQ:STMP) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Risk and Volatility
Ritchie Bros. Auctioneers has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Stamps.com has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
This table compares Ritchie Bros. Auctioneers and Stamps.com’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ritchie Bros. Auctioneers||$1.17 billion||3.94||$121.48 million||$1.08||39.00|
|Stamps.com||$586.93 million||2.22||$168.64 million||$9.84||7.75|
Stamps.com has lower revenue, but higher earnings than Ritchie Bros. Auctioneers. Stamps.com is trading at a lower price-to-earnings ratio than Ritchie Bros. Auctioneers, indicating that it is currently the more affordable of the two stocks.
This table compares Ritchie Bros. Auctioneers and Stamps.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ritchie Bros. Auctioneers||9.90%||15.88%||5.91%|
Institutional and Insider Ownership
87.6% of Ritchie Bros. Auctioneers shares are held by institutional investors. Comparatively, 95.6% of Stamps.com shares are held by institutional investors. 1.6% of Ritchie Bros. Auctioneers shares are held by insiders. Comparatively, 7.3% of Stamps.com shares are held 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.
This is a breakdown of current ratings and target prices for Ritchie Bros. Auctioneers and Stamps.com, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ritchie Bros. Auctioneers||3||4||2||0||1.89|
Ritchie Bros. Auctioneers presently has a consensus target price of $37.00, indicating a potential downside of 12.16%. Stamps.com has a consensus target price of $80.80, indicating a potential upside of 5.94%. Given Stamps.com’s stronger consensus rating and higher possible upside, analysts plainly believe Stamps.com is more favorable than Ritchie Bros. Auctioneers.
Stamps.com beats Ritchie Bros. Auctioneers on 10 of the 14 factors compared between the two stocks.
Ritchie Bros. Auctioneers Company Profile
Ritchie Bros. Auctioneers Incorporated, an asset management and disposition company, sells industrial equipment and other durable assets through its unreserved live on site auctions, online marketplaces, listing services, and private brokerage services. The company sells a range of used and unused equipment, including earthmoving equipment, truck trailers, government surplus, oil and gas equipment, and other industrial assets, as well as construction and heavy machinery. It also offers live auction events with online bidding. The company sells used equipment to its customers through live, unreserved auctions at 40 auction sites worldwide. It serves construction, transportation, agriculture, energy, oil and gas, mining, and forestry sectors. The company operates in the United States, Canada, Australia, the United Arab Emirates, the Netherlands, and internationally. Ritchie Bros. Auctioneers Incorporated was founded in 1958 and is headquartered in Burnaby, Canada.
Stamps.com Company Profile
Stamps.com Inc. provides Internet-based mailing and shipping solutions in the United States and Europe. The company offers mailing and shipping solutions to mail and ship various mail pieces and packages through the United States Postal Service (USPS) under the Stamps.com and Endicia brands. Its solutions support various USPS mail classes, including First Class Mail, Priority Mail, Priority Mail Express, Media Mail, Parcel Select, and others. The company's USPS mailing and shipping solutions enable users to print electronic postage directly onto envelopes, plain paper, or labels using personal computer, printer, and Internet connection. It also provides multi carrier shipping solutions under the MetaPack, ShipStation, ShipWorks, and ShippingEasy brands; mailing and shipping integration solutions comprising electronic postage for transactions to partners who manage the front-end process; branded insurance to insure mails or packages; and international postage solutions. In addition, the company offers customized postage solutions under the PhotoStamps and PictureItPostage brand names, which allow consumers to turn digital photos, designs, or images into USPS-approved postage; and sells NetStamps labels, shipping labels, other mailing labels, dedicated postage printers, scales, and other mailing and shipping-focused office supplies through its mailing and shipping supplies stores. It serves individuals, small businesses, home offices, medium-size businesses, large enterprises, e-commerce merchants, and warehouse shippers. The company was formerly known as StampMaster, Inc. and changed its name to Stamps.com Inc. in December 1998. Stamps.com Inc. was founded in 1996 and is headquartered in El Segundo, California.
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