Financial Comparison: Brink’s Company (The) (BCO) vs. The Advisory Board (ABCO)

Brink’s Company (The) (NYSE: BCO) and The Advisory Board (NASDAQ:ABCO) are both mid-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Valuation and Earnings

This table compares Brink’s Company (The) and The Advisory Board’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brink’s Company (The) $3.15 billion 1.35 $340.80 million $1.68 50.00
The Advisory Board $799.15 million 2.74 $120.83 million $2.69 20.04

Brink’s Company (The) has higher revenue and earnings than The Advisory Board. The Advisory Board is trading at a lower price-to-earnings ratio than Brink’s Company (The), indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

89.9% of Brink’s Company (The) shares are owned by institutional investors. 10.4% of Brink’s Company (The) shares are owned by insiders. Comparatively, 4.7% of The Advisory Board 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.

Analyst Recommendations

This is a summary of recent ratings for Brink’s Company (The) and The Advisory Board, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brink’s Company (The) 0 1 3 0 2.75
The Advisory Board 1 11 3 0 2.13

Brink’s Company (The) currently has a consensus target price of $86.00, indicating a potential upside of 2.38%. The Advisory Board has a consensus target price of $51.44, indicating a potential downside of 4.56%. Given Brink’s Company (The)’s stronger consensus rating and higher possible upside, analysts plainly believe Brink’s Company (The) is more favorable than The Advisory Board.

Dividends

Brink’s Company (The) pays an annual dividend of $0.60 per share and has a dividend yield of 0.7%. The Advisory Board does not pay a dividend. Brink’s Company (The) pays out 35.7% of its earnings in the form of a dividend.

Profitability

This table compares Brink’s Company (The) and The Advisory Board’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brink’s Company (The) 2.73% 34.49% 6.56%
The Advisory Board 13.65% 12.69% 3.30%

Volatility & Risk

Brink’s Company (The) has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, The Advisory Board has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Summary

Brink’s Company (The) beats The Advisory Board on 10 of the 15 factors compared between the two stocks.

Brink’s Company (The) Company Profile

The Brink’s Company (Brink’s) is a provider of logistics and security solutions. The Company operates through nine segments: U.S., France, Mexico, Brazil, Canada, Latin America, EMEA, Asia and Payment Services. The Company’s solutions include cash-in-transit (CIT), automated teller machine (ATM) replenishment and maintenance, cash management services, including vault outsourcing, money processing, and intelligent safe services, international transportation of valuables, and payment services. Its customers include financial institutions, retailers, government agencies (including central banks), mints, jewelers and other commercial operations around the world. As of December 31, 2016, the Company’s global network served customers in over 100 countries. Its services offerings include Core Services, High-Value Services and Other Security Services.

The Advisory Board Company Profile

The Advisory Board Company is a provider of software and solutions to the healthcare and higher education industries. The Company offers subscription-based membership programs, software and data-enabled services. All of its programs are rooted in best practices and extends across four areas, including Best practices research, Technology, Data-enabled services and Consulting services. The best practices research and insight programs provide the foundation for all of its other programs. The Company offers technology analytics programs anchored by cloud-based software applications that surface performance improvement opportunities to accelerate progress. Through its consulting services, the Company provides on-the-ground support for performance improvement initiatives, as well as best practice professional management of areas of the hospital or medical group. The Company’s data-enabled services are primarily focused in the area of enrollment management.

Receive News & Ratings for Brink's Company (The) Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Brink's Company (The) and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply