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

Insider & Institutional Ownership

45.1% of Exela Technologies shares are owned by institutional investors. Comparatively, 89.2% of Ritchie Bros. Auctioneers shares are owned by institutional investors. 53.1% of Exela Technologies shares are owned by insiders. Comparatively, 1.6% of Ritchie Bros. Auctioneers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Exela Technologies -17.99% N/A -8.10%
Ritchie Bros. Auctioneers 9.90% 15.88% 5.91%

Analyst Recommendations

This is a summary of recent recommendations for Exela Technologies and Ritchie Bros. Auctioneers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exela Technologies 0 0 3 0 3.00
Ritchie Bros. Auctioneers 3 4 2 0 1.89

Exela Technologies currently has a consensus price target of $6.00, suggesting a potential upside of 1,390.68%. Ritchie Bros. Auctioneers has a consensus price target of $37.00, suggesting a potential downside of 14.69%. Given Exela Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Exela Technologies is more favorable than Ritchie Bros. Auctioneers.

Risk and Volatility

Exela Technologies has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Ritchie Bros. Auctioneers has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Valuation & Earnings

This table compares Exela Technologies and Ritchie Bros. Auctioneers’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exela Technologies $1.59 billion 0.04 -$162.52 million ($0.77) -0.52
Ritchie Bros. Auctioneers $1.17 billion 4.05 $121.48 million $1.08 40.16

Ritchie Bros. Auctioneers has lower revenue, but higher earnings than Exela Technologies. Exela Technologies 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.

Summary

Ritchie Bros. Auctioneers beats Exela Technologies on 8 of the 14 factors compared between the two stocks.

Exela Technologies Company Profile

Exela Technologies, Inc. (Exela), formerly Quinpario Acquisition Corp. 2, is engaged in providing information and transaction processing solutions. The Company’s segments include Information and Transaction Processing Solutions (ITPS), Healthcare Solutions (HS) and Legal & Loss Prevention Services (LLPS). ITPS provides industry solutions for banking and financial services, including lending solutions for mortgages, banking solutions for clearing, anti-money laundering, sanctions, cross-border settlement; property and casualty insurance solutions for enrollments, and communications. The HS segment offerings include integrated accounts payable and accounts receivable, and information management for both the healthcare payer and provider markets. The LLPS segment solutions include processing of legal claims for class action and mass action settlement administrations, involving project management support, notification and collection, analysis, and distribution of settlement funds.

Ritchie Bros. Auctioneers Company Profile

Ritchie Bros. Auctioneers Incorporated, an asset management and disposition company, sells industrial equipment and other durable assets through its unreserved live on site auctions, online marketplaces, listing services, and private brokerage services. The company sells a range of used and unused equipment, including earthmoving equipment, truck trailers, government surplus, oil and gas equipment, and other industrial assets, as well as construction and heavy machinery. It also offers live auction events with online bidding. The company sells used equipment to its customers through live, unreserved auctions at 40 auction sites worldwide. It serves construction, transportation, agriculture, energy, oil and gas, mining, and forestry sectors. The company operates in the United States, Canada, Australia, the United Arab Emirates, the Netherlands, and internationally. Ritchie Bros. Auctioneers Incorporated was founded in 1958 and is headquartered in Burnaby, Canada.

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