Cardtronics PLC (NASDAQ: CATM) and Ritchie Bros. Auctioneers (NYSE:RBA) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Risk & Volatility

Cardtronics PLC has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Ritchie Bros. Auctioneers has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Cardtronics PLC and Ritchie Bros. Auctioneers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardtronics PLC 0 2 2 0 2.50
Ritchie Bros. Auctioneers 2 5 4 0 2.18

Cardtronics PLC currently has a consensus price target of $46.00, indicating a potential upside of 57.16%. Ritchie Bros. Auctioneers has a consensus price target of $31.90, indicating a potential upside of 1.37%. Given Cardtronics PLC’s stronger consensus rating and higher probable upside, research analysts clearly believe Cardtronics PLC is more favorable than Ritchie Bros. Auctioneers.

Dividends

Ritchie Bros. Auctioneers pays an annual dividend of $0.68 per share and has a dividend yield of 2.2%. Cardtronics PLC does not pay a dividend. Ritchie Bros. Auctioneers pays out 144.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cardtronics PLC has raised its dividend for 14 consecutive years.

Profitability

This table compares Cardtronics PLC and Ritchie Bros. Auctioneers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardtronics PLC 4.83% 28.23% 7.72%
Ritchie Bros. Auctioneers 8.96% 14.72% 6.14%

Earnings & Valuation

This table compares Cardtronics PLC and Ritchie Bros. Auctioneers’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cardtronics PLC $1.38 billion 0.97 $304.90 million $1.45 20.19
Ritchie Bros. Auctioneers $566.33 million 5.95 $203.46 million $0.47 66.96

Cardtronics PLC has higher revenue and earnings than Ritchie Bros. Auctioneers. Cardtronics PLC 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.

Institutional and Insider Ownership

96.0% of Ritchie Bros. Auctioneers shares are held by institutional investors. 1.2% of Cardtronics PLC shares are held by insiders. Comparatively, 0.4% of Ritchie Bros. Auctioneers shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Cardtronics PLC beats Ritchie Bros. Auctioneers on 11 of the 17 factors compared between the two stocks.

About Cardtronics PLC

Cardtronics plc, formerly Cardtronics, Inc., provides automated consumer financial services through its network of automated teller machines (ATMS) and multi-function financial services kiosks. The Company’s operations consists of its North America, Europe, and Corporate & Other segments. Its ATM operations in the United States, Canada, Mexico and Puerto Rico are included in its North America segment. Its ATM operations in the United Kingdom, Ireland, Germany, Poland, Spain and i-design are included in its Europe segment. Its transaction processing operations, which service its North American and European operations, along with external customers, and the Company’s corporate general and administrative functions comprise the Corporate & Other segment. As of December 31, 2016, it provided services to approximately 203,000 ATMs throughout the United States (including the United States territory of Puerto Rico), the United Kingdom, Ireland, Germany, Poland, Spain, Canada and Mexico.

About Ritchie Bros. Auctioneers

Ritchie Bros Auctioneers Inc is a Canada-based holding company. The Company is an industrial auctioneer and used equipment distributor, selling used equipment and other assets. Its segments include Core Auction, which is a network of auction locations that conduct live, unreserved auctions with both on-site and online bidding, and Other, which includes its EquipmentOne and Mascus International Holding B.V. (Mascus) online services. EquipmentOne is an online marketplace that equipment sellers can navigate independently. EquipmentOne facilitates the completion of sales through a settlement process managed by EquipmentOne that protects both the seller and the buyer. Mascus is an online equipment listing service for used heavy machinery and trucks. It offers subscriptions to equipment dealers, brokers, exporters and equipment manufacturers to list equipment available for sale at a listed price. The Company, through Mascus, provides online advertising services, business tools and solutions.

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