Financial Survey: Ritchie Bros. Auctioneers (RBA) versus Information Services Group (III)
Ritchie Bros. Auctioneers (NYSE: RBA) and Information Services Group (NASDAQ:III) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
This is a breakdown of current ratings for Ritchie Bros. Auctioneers and Information Services Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ritchie Bros. Auctioneers||2||4||5||0||2.27|
|Information Services Group||0||0||2||0||3.00|
Earnings and Valuation
This table compares Ritchie Bros. Auctioneers and Information Services Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ritchie Bros. Auctioneers||$566.40 million||6.07||$91.83 million||$0.61||52.57|
|Information Services Group||$216.50 million||0.85||-$6.50 million||($0.21)||-20.24|
Ritchie Bros. Auctioneers has higher revenue and earnings than Information Services Group. Information Services Group 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.
Insider and Institutional Ownership
96.6% of Ritchie Bros. Auctioneers shares are owned by institutional investors. Comparatively, 41.7% of Information Services Group shares are owned by institutional investors. 0.4% of Ritchie Bros. Auctioneers shares are owned by insiders. Comparatively, 12.0% of Information Services Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Ritchie Bros. Auctioneers pays an annual dividend of $0.68 per share and has a dividend yield of 2.1%. Information Services Group does not pay a dividend. Ritchie Bros. Auctioneers pays out 111.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Information Services Group has raised its dividend for 15 consecutive years.
This table compares Ritchie Bros. Auctioneers and Information Services Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ritchie Bros. Auctioneers||11.43%||13.04%||4.87%|
|Information Services Group||-2.97%||-4.66%||-1.21%|
Volatility and Risk
Ritchie Bros. Auctioneers has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Information Services Group has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.
Ritchie Bros. Auctioneers beats Information Services Group on 12 of the 17 factors compared between the two stocks.
About Ritchie Bros. Auctioneers
Ritchie Bros Auctioneers Inc is a Canada-based holding company. The Company is an industrial auctioneer and used equipment distributor, selling used equipment and other assets. Its segments include Core Auction, which is a network of auction locations that conduct live, unreserved auctions with both on-site and online bidding, and Other, which includes its EquipmentOne and Mascus International Holding B.V. (Mascus) online services. EquipmentOne is an online marketplace that equipment sellers can navigate independently. EquipmentOne facilitates the completion of sales through a settlement process managed by EquipmentOne that protects both the seller and the buyer. Mascus is an online equipment listing service for used heavy machinery and trucks. It offers subscriptions to equipment dealers, brokers, exporters and equipment manufacturers to list equipment available for sale at a listed price. The Company, through Mascus, provides online advertising services, business tools and solutions.
About Information Services Group
Information Services Group, Inc. is a technology insights, market intelligence and advisory services company. The Company operates in the segment of fact-based sourcing advisory services. It supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services with a focus on information technology, business process transformation, program management services and enterprise resource planning. It offers service lines, including research, consulting, managed services, network carrier services, robotic process automation (RPA), outsourcing advisory and provider services. It specializes in digital transformation services, including automation, cloud and data analytics; managed governance and risk services; network carrier services; technology strategy and operations design; change management, and technology research and analysis.
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