Vantiv (NYSE: VNTV) and Brady (NYSE:BRC) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Profitability

This table compares Vantiv and Brady’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vantiv 6.07% 41.19% 7.92%
Brady 8.81% 13.90% 9.14%

Risk and Volatility

Vantiv has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Brady has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Valuation & Earnings

This table compares Vantiv and Brady’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vantiv $3.58 billion 3.73 $213.20 million $1.45 51.81
Brady $1.11 billion 1.79 $95.64 million $1.89 20.48

Vantiv has higher revenue and earnings than Brady. Brady is trading at a lower price-to-earnings ratio than Vantiv, indicating that it is currently the more affordable of the two stocks.

Dividends

Brady pays an annual dividend of $0.83 per share and has a dividend yield of 2.1%. Vantiv does not pay a dividend. Brady pays out 43.9% of its earnings in the form of a dividend. Vantiv has raised its dividend for 31 consecutive years.

Analyst Ratings

This is a summary of current recommendations for Vantiv and Brady, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vantiv 0 9 19 0 2.68
Brady 1 2 1 0 2.00

Vantiv currently has a consensus target price of $75.84, suggesting a potential upside of 0.95%. Brady has a consensus target price of $38.75, suggesting a potential upside of 0.13%. Given Vantiv’s stronger consensus rating and higher possible upside, equities analysts plainly believe Vantiv is more favorable than Brady.

Institutional and Insider Ownership

77.2% of Brady shares are held by institutional investors. 1.3% of Vantiv shares are held by insiders. Comparatively, 15.6% of Brady shares are held by insiders. 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

Vantiv beats Brady on 10 of the 17 factors compared between the two stocks.

Vantiv Company Profile

Vantiv, Inc. is a holding company. The Company conducts its operations through its subsidiary, Vantiv Holding, LLC. The Company is a payment processor. The Company’s segments include Merchant Services and Financial Institution Services. The Company offers a range of payment processing services that enable its clients to meet their payment processing needs through a single provider. The Company enables merchants to accept and process credit, debit and prepaid payments, and provide them supporting value-added services, such as security solutions and fraud management, information solutions and interchange management. It also provides payment services to financial institutions, such as card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine (ATM) driving and network gateway and switching services that utilize the Company’s Jeanie personal identification number (PIN) debit payment network.

Brady Company Profile

Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The Company has two segments: Identification Solutions (IDS) and Workplace Safety (WPS). The IDS segment includes identification and healthcare products, and the WPS segment includes workplace safety and compliance products. The IDS segment offers products that are manufactured under various brands, including the Brady brand, and are primarily sold through distribution to a range of maintenance, repair and operations (MRO) and original equipment manufacturing (OEM) customers, and through other channels. The WPS segment offers a range of product categories, such as safety and compliance signs, tags, and labels; informational and architectural signage; industrial warehouse and office equipment, and labor law compliance posters. Its brands include Electromark, Identicard, PromoVision, Scafftag, Seton and Emedco.

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