Checkpoint Systems (NYSE: CKP) and Brady Corporation (NYSE:BRC) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Checkpoint Systems and Brady Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Checkpoint Systems 0 0 0 0 N/A
Brady Corporation 0 2 1 0 2.33

Brady Corporation has a consensus price target of $38.33, indicating a potential upside of 16.69%. Given Brady Corporation’s higher possible upside, analysts plainly believe Brady Corporation is more favorable than Checkpoint Systems.

Profitability

This table compares Checkpoint Systems and Brady Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Checkpoint Systems -27.26% -50.16% -20.24%
Brady Corporation 8.64% 14.44% 8.84%

Dividends

Brady Corporation pays an annual dividend of $0.82 per share and has a dividend yield of 2.5%. Checkpoint Systems does not pay a dividend. Brady Corporation pays out 44.3% of its earnings in the form of a dividend. Checkpoint Systems has increased its dividend for 31 consecutive years.

Insider & Institutional Ownership

74.9% of Brady Corporation shares are owned by institutional investors. 15.6% of Brady Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Checkpoint Systems and Brady Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Checkpoint Systems N/A N/A N/A N/A N/A
Brady Corporation $1.11 billion 1.52 $156.45 million $1.85 17.76

Brady Corporation has higher revenue and earnings than Checkpoint Systems.

Summary

Brady Corporation beats Checkpoint Systems on 9 of the 11 factors compared between the two stocks.

Checkpoint Systems Company Profile

Checkpoint Systems, Inc. is a United States-based supplier of merchandise availability solutions for the retail industry. The Company provides end-to-end solutions enabling retailers to achieve real-time inventory, accelerate the replenishment cycle, prevent out-of-stocks and reduce theft. It offers merchandise availability solutions, such as shrink management, including antennas, labels and tags, source tagging, deactivation, remote service and support, and Alpha High Theft Solutions, and merchandise visibility solutions, including inventory management, asset tracking and OneTag Program. OneTag Program allows retailers to obtain the benefits of inventory visibility and loss prevention with a single radio frequency identification tag. It offers apparel labelling solutions, such as Trim, including woven labels, printed fabric labels and specialty trim services, and brand merchandising, including printed items and self-adhesive. It serves markets, such as electronics and grocery.

Brady Corporation Company Profile

Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The Company has two segments: Identification Solutions (IDS) and Workplace Safety (WPS). The IDS segment includes identification and healthcare products, and the WPS segment includes workplace safety and compliance products. The IDS segment offers products that are manufactured under various brands, including the Brady brand, and are primarily sold through distribution to a range of maintenance, repair and operations (MRO) and original equipment manufacturing (OEM) customers, and through other channels. The WPS segment offers a range of product categories, such as safety and compliance signs, tags, and labels; informational and architectural signage; industrial warehouse and office equipment, and labor law compliance posters. Its brands include Electromark, Identicard, PromoVision, Scafftag, Seton and Emedco.

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