Critical Contrast: Boyd Group Services (OTCMKTS:BYDGF) versus Brink’s (NYSE:BCO)

Brink’s (NYSE:BCO) and Boyd Group Services (OTCMKTS:BYDGF) are both mid-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Institutional and Insider Ownership

95.0% of Brink’s shares are owned by institutional investors. Comparatively, 0.2% of Boyd Group Services shares are owned by institutional investors. 1.0% of Brink’s shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Brink’s and Boyd Group Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brink’s	$5.26 billion	0.83	$199.70 million	$4.32	24.41
Boyd Group Services	$3.07 billion	1.11	$24.54 million	$0.37	427.62

Brink’s has higher revenue and earnings than Boyd Group Services. Brink’s 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Brink’s and Boyd Group Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brink’s	0	2	2	0	2.50
Boyd Group Services	0	0	4	0	3.00

Brink’s currently has a consensus price target of $154.00, suggesting a potential upside of 46.04%. Given Brink’s’ higher possible upside, equities analysts plainly believe Brink’s is more favorable than Boyd Group Services.

Profitability

This table compares Brink’s and Boyd Group Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brink’s	3.30%	87.18%	4.95%
Boyd Group Services	0.27%	2.70%	0.91%

Risk and Volatility

Brink’s has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Boyd Group Services has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Dividends

Brink’s pays an annual dividend of $1.02 per share and has a dividend yield of 1.0%. Boyd Group Services pays an annual dividend of $0.44 per share and has a dividend yield of 0.3%. Brink’s pays out 23.6% 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. Brink’s has raised its dividend for 5 consecutive years. Brink’s is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Brink’s beats Boyd Group Services on 13 of the 17 factors compared between the two stocks.

About Brink’s

The Brink’s Co. engages in providing cash management services, digital retail solutions, and ATM managed services. It operates through the following geographical segments: North America, Latin America, Europe, and Rest of World. The North America segment operates in the U.S. and Canada. The Latin America segment refers to the operations in Latin American countries. The Europe segment relates to operations in European countries. The Rest of World segment focuses on the operations in the Middle East, Africa, and Asia. The company was founded by Perry Brink and Fidelia Brink on May 5, 1859 and is headquartered in Richmond, VA.

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.