Critical Survey: Element Fleet Management (OTCMKTS:ELEEF) and Boyd Group Services (OTCMKTS:BYDGF)

Element Fleet Management (OTCMKTS:ELEEF) and Boyd Group Services (OTCMKTS:BYDGF) are both mid-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Profitability

This table compares Element Fleet Management and Boyd Group Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Element Fleet Management	23.33%	24.75%	3.91%
Boyd Group Services	0.27%	2.70%	0.91%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Element Fleet Management and Boyd Group Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Element Fleet Management	0	0	2	1	3.33
Boyd Group Services	0	0	4	0	3.00

Earnings & Valuation

This table compares Element Fleet Management and Boyd Group Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Element Fleet Management	$1.19 billion	5.14	$279.13 million	$0.74	21.05
Boyd Group Services	$3.07 billion	1.11	$24.54 million	$0.37	427.62

Element Fleet Management has higher earnings, but lower revenue than Boyd Group Services. Element Fleet Management is trading at a lower price-to-earnings ratio than Boyd Group Services, indicating that it is currently the more affordable of the two stocks.

Dividends

Element Fleet Management pays an annual dividend of $0.43 per share and has a dividend yield of 2.8%. Boyd Group Services pays an annual dividend of $0.44 per share and has a dividend yield of 0.3%. Element Fleet Management pays out 58.1% of its earnings in the form of a dividend. Boyd Group Services pays out 118.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Element Fleet Management is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

0.2% of Boyd Group Services shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Element Fleet Management beats Boyd Group Services on 10 of the 14 factors compared between the two stocks.

About Element Fleet Management

Element Fleet Management Corp. operates as a fleet management company primarily in Canada, Mexico, Australia, and New Zealand. The company offers end-to-end fleet cars, trucks, and material handling support equipment acquisition; and end-to-end electric vehicle fleet including fleet planning, charging infrastructure solutions, acquisition, financing, maintenance, and remarketing. It provides commercial fleet financing comprising operating and capital lease, sale and leaseback funding, loans, rental fleet financing, client owned acquisition program, and fair market value lease for fleet cars, trucks, and equipment; and vehicle licensing and registration services, such as renewal, fleet title management, and insurance card management services. In addition, the company provides collision management services, such as 24/7 driver assistance, collision evaluation, repair management, and subrogation; fleet management outsourcing solutions; fuel, maintenance, and safety solutions; telematics and fleet connectivity solutions; and toll and violation management, as well as fleet remarketing, sale leaseback, and strategic fleet management consulting services. It serves construction, energy, oil and gas, food and beverages, healthcare, services, and transport sectors. Element Fleet Management Corp. was incorporated in 2007 and is based in Toronto, Canada.

About Boyd Group Services

Boyd Group Services Inc., together with its subsidiaries, operates non-franchised collision repair centers in North America. The company operates its locations under the Boyd Autobody & Glass and Assured Automotive names in Canada; and Gerber Collision & Glass name in the United States. It also operates as a retail auto glass operator under the Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority, and Autoglassonly.com names in the United States. In addition, the company operates a third-party administrator, Gerber National Claims Services that offers glass, emergency roadside, and first notice of loss services. It serves insurance companies and individual vehicle owners. The company was founded in 1990 and is headquartered in Winnipeg, Canada.