Healthcare Services Group (NASDAQ:HCSG) vs. RB Global (NYSE:RBA) Financial Contrast

Healthcare Services Group (NASDAQ:HCSG) and RB Global (NYSE:RBA) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Risk & Volatility

Healthcare Services Group has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, RB Global has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Valuation & Earnings

This table compares Healthcare Services Group and RB Global”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Services Group	$1.84 billion	0.80	$59.06 million	$1.72	12.50
RB Global	$4.59 billion	3.19	$423.10 million	$2.33	34.72

RB Global has higher revenue and earnings than Healthcare Services Group. Healthcare Services Group is trading at a lower price-to-earnings ratio than RB Global, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Healthcare Services Group and RB Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Services Group	6.59%	18.97%	11.96%
RB Global	9.99%	12.37%	5.58%

Institutional and Insider Ownership

98.0% of Healthcare Services Group shares are owned by institutional investors. Comparatively, 95.4% of RB Global shares are owned by institutional investors. 2.9% of Healthcare Services Group shares are owned by insiders. Comparatively, 0.6% of RB Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Healthcare Services Group and RB Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Services Group	0	4	6	0	2.60
RB Global	0	3	6	1	2.80

Healthcare Services Group currently has a consensus target price of $26.67, suggesting a potential upside of 24.03%. RB Global has a consensus target price of $126.29, suggesting a potential upside of 56.09%. Given RB Global’s stronger consensus rating and higher probable upside, analysts plainly believe RB Global is more favorable than Healthcare Services Group.

Summary

RB Global beats Healthcare Services Group on 9 of the 14 factors compared between the two stocks.

About Healthcare Services Group

Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary. The Housekeeping segment engages in the cleaning, disinfecting, and sanitizing of resident rooms and common areas of the customers' facilities, as well as laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at the customers' facilities. The Dietary segment provides food purchasing, meal preparation, and professional dietitian services, which include the development of menus that meet the dietary needs of residents; and on-site management and clinical consulting services to facilities. It serves long-term and post-acute care facilities, hospitals, and the healthcare industry through referrals and solicitation of target facilities. The company was incorporated in 1976 and is based in Bensalem, Pennsylvania.

About RB Global

RB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution. The company's brands include GovPlanet, an online marketplace for the sale of government and military assets; RB Auction, an onsite and online marketplace for selling and buying used equipment; IronPlanet, an online marketplace for selling and buying used equipment; Marketplace-E, an online solution that make offers/buy now format; Rouse Appraisals, a certified appraisal service solution; Ritchie List Mascus, an online equipment listing service and B2B dealer portal; CSAToday, an online reporting and analysis tool that gives sellers the ability to manage their vehicle assets and monitor sales performance; and Catastrophe Response Services. In addition, it offers title, data, transportation and logistics, refurbishing, inspection, and financial services. It serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.