Critical Survey: BrightView (NYSE:BV) & Royalty Management (NASDAQ:RMCO)

Royalty Management (NASDAQ:RMCO) and BrightView (NYSE:BV) are both small-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Profitability

This table compares Royalty Management and BrightView’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royalty Management	-14.53%	-7.93%	-5.22%
BrightView	0.74%	5.03%	1.87%

Risk & Volatility

Royalty Management has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500. Comparatively, BrightView has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Insider and Institutional Ownership

67.2% of Royalty Management shares are held by institutional investors. Comparatively, 92.4% of BrightView shares are held by institutional investors. 0.3% of Royalty Management shares are held by company insiders. Comparatively, 2.8% of BrightView shares are held by company 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.

Earnings & Valuation

This table compares Royalty Management and BrightView”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royalty Management	$4.95 million	8.00	-$730,000.00	($0.06)	-43.50
BrightView	$2.67 billion	0.36	$56.00 million	($0.25)	-41.62

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

Analyst Recommendations

This is a summary of current ratings for Royalty Management and BrightView, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royalty Management	1	1	1	0	2.00
BrightView	3	2	3	1	2.22

BrightView has a consensus target price of $14.10, suggesting a potential upside of 35.51%. Given BrightView’s stronger consensus rating and higher probable upside, analysts plainly believe BrightView is more favorable than Royalty Management.

Summary

BrightView beats Royalty Management on 13 of the 15 factors compared between the two stocks.

About Royalty Management

Royalty Management Holding Corporation provides environmental consulting and services in the United States. It is also involved in investing or purchasing assets, such as real estate and mining permits, patents, intellectual property, and emerging technologies. The company was incorporated in 2021 and is based in Fishers, Indiana.

About BrightView

BrightView Holdings, Inc., through its subsidiaries, provides commercial landscaping services in the United States. It operates through two segments, Maintenance Services and Development Services. The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance. Its customers' properties include corporate and commercial properties, homeowners associations, public parks, hotels and resorts, airport authorities, municipalities, hospitals and other healthcare facilities, educational institutions, restaurants and retail, and golf courses. This segment's customer base includes approximately 8,800 office parks and corporate campuses 7,100 residential communities, and 550 educational institutions. The Development Services segment offers landscape architecture and development services for new facilities and redesign projects. Its services include project design and management services, landscape architecture and installation, irrigation installation, tree moving and installation, pool and water features, sports field, and other services. BrightView Holdings, Inc. also operates as official field consultant to various league baseball. The company was founded in 1939 and is headquartered in Blue Bell, Pennsylvania.