Brink’s Company (The) (BCO) vs. General Finance Corporation (GFN) Head-To-Head Review
Brink’s Company (The) (NYSE: BCO) and General Finance Corporation (NASDAQ:GFN) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.
Brink’s Company (The) pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. General Finance Corporation does not pay a dividend. Brink’s Company (The) pays out 35.7% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Brink’s Company (The) and General Finance Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Brink’s Company (The)||$3.15 billion||1.24||$340.80 million||$1.68||45.98|
|General Finance Corporation||$275.92 million||0.45||$55.88 million||($0.33)||-14.09|
Brink’s Company (The) has higher revenue and earnings than General Finance Corporation. General Finance Corporation is trading at a lower price-to-earnings ratio than Brink’s Company (The), indicating that it is currently the more affordable of the two stocks.
This table compares Brink’s Company (The) and General Finance Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brink’s Company (The)||2.73%||34.49%||6.56%|
|General Finance Corporation||-1.81%||-1.76%||-0.48%|
Risk and Volatility
Brink’s Company (The) has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500. Comparatively, General Finance Corporation has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.
Insider and Institutional Ownership
89.7% of Brink’s Company (The) shares are owned by institutional investors. Comparatively, 19.2% of General Finance Corporation shares are owned by institutional investors. 10.4% of Brink’s Company (The) shares are owned by insiders. Comparatively, 25.8% of General Finance Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for Brink’s Company (The) and General Finance Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brink’s Company (The)||0||1||3||0||2.75|
|General Finance Corporation||0||0||2||0||3.00|
Brink’s Company (The) currently has a consensus target price of $62.00, indicating a potential downside of 19.74%. General Finance Corporation has a consensus target price of $7.60, indicating a potential upside of 63.44%. Given General Finance Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe General Finance Corporation is more favorable than Brink’s Company (The).
Brink’s Company (The) beats General Finance Corporation on 11 of the 15 factors compared between the two stocks.
About Brink’s Company (The)
The Brink’s Company (Brink’s) is a provider of logistics and security solutions. The Company operates through nine segments: U.S., France, Mexico, Brazil, Canada, Latin America, EMEA, Asia and Payment Services. The Company’s solutions include cash-in-transit (CIT), automated teller machine (ATM) replenishment and maintenance, cash management services, including vault outsourcing, money processing, and intelligent safe services, international transportation of valuables, and payment services. Its customers include financial institutions, retailers, government agencies (including central banks), mints, jewelers and other commercial operations around the world. As of December 31, 2016, the Company’s global network served customers in over 100 countries. Its services offerings include Core Services, High-Value Services and Other Security Services.
About General Finance Corporation
General Finance Corporation is a specialty rental services company. The Company offers a range of portable storage units, including its core 20-feet and 40-feet steel containers, office container, mobile office and modular space products and steel tanks. It has two geographic areas that include its four operating segments: the Asia-Pacific area, consisting of the leasing operations of Royal Wolf Holdings Limited and its Australian and New Zealand subsidiaries (Royal Wolf), and North America, consisting of the combined leasing operations of Pac-Van, Inc. and its Canadian subsidiary, PV Acquisition Corp. (Pac-Van) and Lone Star Tank Rental Inc. (Lone Star), and the manufacturing operations of GFN Manufacturing Corporation and its subsidiary, Southern Frac, LLC (Southern Frac). As of June 30, 2016, the Company provided its storage solutions to over 41,000 customers across a range of industries, including commercial, construction, retail, transportation, education and others.
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