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

Analyst Ratings

This is a breakdown of current ratings and price targets for Liberty Tax and its peers, 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 94 314 614 12 2.53

As a group, “Patent owners & lessors” companies have a potential upside of 27.29%. Given Liberty Tax’s peers higher possible upside, analysts plainly believe Liberty Tax has less favorable growth aspects than its peers.

Profitability

This table compares Liberty Tax and its peers’ 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 -150.86% -59.86% -43.28%

Earnings & Valuation

This table compares Liberty Tax and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Liberty Tax $174.87 million $130,000.00 15.63
Liberty Tax Competitors $185.18 million $7.71 million 3.47

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

Dividends

Liberty Tax pays an annual dividend of $0.64 per share and has a dividend yield of 6.4%. 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.

Insider and Institutional Ownership

40.9% of Liberty Tax shares are owned by institutional investors. Comparatively, 36.5% of shares of all “Patent owners & lessors” companies are owned by institutional investors. 15.3% of Liberty Tax shares are owned by company insiders. Comparatively, 18.6% of shares of all “Patent owners & lessors” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

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

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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