Higher One Holdings (NYSE: ONE) and Brink’s Company (The) (NYSE:BCO) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Earnings & Valuation

This table compares Higher One Holdings and Brink’s Company (The)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Higher One Holdings N/A N/A N/A $0.16 32.19
Brink’s Company (The) $3.15 billion 1.22 $340.80 million $1.68 45.27

Brink’s Company (The) has higher revenue and earnings than Higher One Holdings. Higher One Holdings is trading at a lower price-to-earnings ratio than Brink’s Company (The), indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Higher One Holdings has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Brink’s Company (The) has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500.

Dividends

Brink’s Company (The) pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. Higher One Holdings does not pay a dividend. Brink’s Company (The) pays out 35.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations for Higher One Holdings and Brink’s Company (The), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Higher One Holdings 0 0 0 0 N/A
Brink’s Company (The) 0 1 3 0 2.75

Brink’s Company (The) has a consensus price target of $62.00, indicating a potential downside of 18.47%. Given Brink’s Company (The)’s higher possible upside, analysts plainly believe Brink’s Company (The) is more favorable than Higher One Holdings.

Insider & Institutional Ownership

89.5% of Brink’s Company (The) shares are owned by institutional investors. 10.4% of Brink’s Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Higher One Holdings and Brink’s Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Higher One Holdings -26.77% -16.36% -10.01%
Brink’s Company (The) 2.73% 34.49% 6.56%

Summary

Brink’s Company (The) beats Higher One Holdings on 11 of the 12 factors compared between the two stocks.

About Higher One Holdings

Higher One Holdings, Inc. is a provider of technology-based payment processing and refund disbursement services to higher education institutions and their students. The Company also provides campus communities with student-oriented banking services, which include user-friendly features, through its bank partners. The Company operates through two segments: Disbursements and Payments. The Disbursements segment includes its Refund Management disbursement service, which is offered to higher education institution clients, and the OneAccount, a Federal Deposit Insurance Corporation (FDIC)-insured online checking account that is offered to students, as well as faculty, staff and alumni. The Payments segment includes its CASHNet payment processing suite and its Campus Solutions suite, both of which enable higher education institutions to accept online payments, automate certain billing and processing functions, and offer tuition payment plans.

About Brink’s Company (The)

The Brink’s Company (Brink’s) is a provider of logistics and security solutions. The Company operates through nine segments: U.S., France, Mexico, Brazil, Canada, Latin America, EMEA, Asia and Payment Services. The Company’s solutions include cash-in-transit (CIT), automated teller machine (ATM) replenishment and maintenance, cash management services, including vault outsourcing, money processing, and intelligent safe services, international transportation of valuables, and payment services. Its customers include financial institutions, retailers, government agencies (including central banks), mints, jewelers and other commercial operations around the world. As of December 31, 2016, the Company’s global network served customers in over 100 countries. Its services offerings include Core Services, High-Value Services and Other Security Services.

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