Analyzing Aaron’s (AAN) & Textainer Group (TGH)
Aaron’s (NYSE: TGH) and Textainer Group (NYSE:TGH) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Insider & Institutional Ownership
25.7% of Textainer Group shares are held by institutional investors. 2.3% of Aaron’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Aaron’s and Textainer Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aaron’s presently has a consensus price target of $51.10, suggesting a potential upside of 3.86%. Textainer Group has a consensus price target of $21.40, suggesting a potential upside of 50.18%. Given Textainer Group’s higher probable upside, analysts plainly believe Textainer Group is more favorable than Aaron’s.
Valuation and Earnings
This table compares Aaron’s and Textainer Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Aaron’s||$3.38 billion||1.01||$292.53 million||$2.56||19.22|
|Textainer Group||$490.85 million||1.66||$19.36 million||$0.41||34.76|
Aaron’s has higher revenue and earnings than Textainer Group. Aaron’s is trading at a lower price-to-earnings ratio than Textainer Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Aaron’s has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500. Comparatively, Textainer Group has a beta of 2.67, indicating that its share price is 167% more volatile than the S&P 500.
Aaron’s pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Textainer Group does not pay a dividend. Aaron’s pays out 4.7% of its earnings in the form of a dividend. Aaron’s has raised its dividend for 11 consecutive years.
This table compares Aaron’s and Textainer Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Aaron’s beats Textainer Group on 10 of the 17 factors compared between the two stocks.
Aaron’s Company Profile
Aaron's, Inc. operates as an omnichannel provider of lease-purchase solutions. It operates through three segments: Progressive Leasing, Aaron's Business, and DAMI. The company engages in the sale, lease ownership, and specialty retailing of furniture, consumer electronics, home appliances, and accessories. As of February 15, 2018, it operated approximately 1,726 company-operated and franchised stores in 47 states and Canada, as well as its e-commerce platform, Aarons.com. Aaron's, Inc. was founded in 1955 and is headquartered in Atlanta, Georgia.
Textainer Group Company Profile
Textainer Group Holdings Limited, through its subsidiaries, engages in the purchase, ownership, management, leasing, and disposal of a fleet of intermodal containers worldwide. It operates through three segments: Container Ownership, Container Management, and Container Resale. The company owns and leases standard dry freight containers, refrigerated, and other special-purpose containers. It also provides container management, acquisition, and disposal services to affiliated and unaffiliated container investors. In addition, the company sells containers from its fleet, as well as purchases, leases, or resells containers from shipping line customers, container traders, and other sellers of containers. It operates a fleet of approximately 2.2 million containers, representing 3.3 million twenty-foot equivalent units. The company primarily serves shipping lines, as well as freight forwarding companies and the United States military. Textainer Group Holdings Limited was founded in 1979 and is headquartered in Hamilton, Bermuda.
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