Aaron’s, (NYSE: AAN) and Tech Data Corporation (NASDAQ:TECD) are both mid-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitabiliy, earnings, valuation, dividends, institutional ownership and risk.
This table compares Aaron’s, and Tech Data Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tech Data Corporation||0.69%||11.67%||3.32%|
This is a summary of current ratings and recommmendations for Aaron’s, and Tech Data Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tech Data Corporation||0||2||4||0||2.67|
Aaron’s, presently has a consensus price target of $37.00, suggesting a potential downside of 2.99%. Tech Data Corporation has a consensus price target of $106.60, suggesting a potential upside of 0.38%. Given Tech Data Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Tech Data Corporation is more favorable than Aaron’s, .
Volatility & Risk
Aaron’s, has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500. Comparatively, Tech Data Corporation has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.
Valuation & Earnings
This table compares Aaron’s, and Tech Data Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Aaron’s,||$3.20 billion||0.84||$467.52 million||$1.97||19.36|
|Tech Data Corporation||$27.94 billion||0.14||$441.14 million||$5.38||19.74|
Aaron’s, has higher revenue, but lower earnings than Tech Data Corporation. Aaron’s, is trading at a lower price-to-earnings ratio than Tech Data Corporation, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
99.8% of Aaron’s, shares are held by institutional investors. Comparatively, 93.3% of Tech Data Corporation shares are held by institutional investors. 1.9% of Aaron’s, shares are held by company insiders. Comparatively, 1.6% of Tech Data Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Aaron’s, pays an annual dividend of $0.11 per share and has a dividend yield of 0.3%. Tech Data Corporation does not pay a dividend. Aaron’s, pays out 5.6% of its earnings in the form of a dividend. Tech Data Corporation has increased its dividend for 10 consecutive years.
Aaron’s, beats Tech Data Corporation on 9 of the 17 factors compared between the two stocks.
Aaron’s, Company Profile
Aaron’s, Inc. (Aaron’s) is an omnichannel provider of lease-purchase solutions. The Company engages in the sales and lease ownership and specialty retailing of furniture, consumer electronics, home appliances and accessories through its Company-operated and franchised stores in Canada, as well as its e-commerce platform, Aarons.com. Its segments include Sales and Lease Ownership, Progressive Finance Holdings, LLC (Progressive), Dent-A-Med, Inc., doing business as the HELPcard (DAMI), Franchise and Manufacturing. Its stores carry brands, such as Samsung, Frigidaire, Hewlett-Packard, LG, Whirlpool, Simmons, Philips, Ashley and Magnavox. As of December 31, 2016, it had 1,864 Aaron’s stores, consisted of 1,165 Company-operated stores in 28 states, the District of Columbia and Canada, and 699 independently-owned franchised stores in 46 states and Canada. It owns trademarks and trade names used in business, including Progressive, Dent-A-Med, the HELPcard and Woodhaven Furniture Industries.
Tech Data Corporation Company Profile
Tech Data Corporation is a wholesale distributor of technology products. The Company serves as a link in the technology supply chain by bringing products from the technology vendors to market, as well as providing its customers with logistics capabilities and services. It operates through the segment of distributing technology products, logistics management and other value-added services. It operates in two geographic segments: the Americas and Europe. It provides resellers training and technical support suite of electronic commerce tools customized shipping documents product configuration or integration services and access to financing programs. Its customers include value-added resellers, direct marketers, retailers and corporate resellers who support the diverse technology needs of end users. It sells its products to customers in approximately 100 countries throughout North America, South America, Europe, the Middle East and Africa.
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