Capita (CTAGF) vs. Its Rivals Financial Review

Capita (OTCMKTS:CTAGF) is one of 354 public companies in the “Commercial Services & Supplies” industry, but how does it weigh in compared to its peers? We will compare Capita to similar companies based on the strength of its earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares Capita and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capita	N/A	N/A	N/A
Capita Competitors	-60.96%	-122.75%	-1.36%

Insider and Institutional Ownership

51.5% of Capita shares are held by institutional investors. Comparatively, 39.5% of shares of all “Commercial Services & Supplies” companies are held by institutional investors. 16.7% of shares of all “Commercial Services & Supplies” companies are held by 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.

Dividends

Capita pays an annual dividend of $0.18 per share and has a dividend yield of 5.1%. Capita pays out 70.1% of its earnings in the form of a dividend. As a group, “Commercial Services & Supplies” companies pay a dividend yield of 2.5% and pay out 62.6% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Capita and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capita	0	1	0	0	2.00
Capita Competitors	1808	6078	8954	650	2.48

As a group, “Commercial Services & Supplies” companies have a potential upside of 10.21%. Given Capita’s peers stronger consensus rating and higher probable upside, analysts clearly believe Capita has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Capita and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Capita	N/A	N/A	13.78
Capita Competitors	$2.43 billion	$139.27 million	24.24

Capita’s peers have higher revenue and earnings than Capita. Capita is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Capita peers beat Capita on 8 of the 13 factors compared.

Capita Company Profile

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally. It operates in two divisions: Public Service and Capita Experience divisions. The company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration. It also provides customer experience transformation, contact management, collection and debt management, complaint handling, customer experience system and software, acquisition and retention, and data and analytics. In addition, the company offers licensing and support, support, digital policing, and engineering practice; learning and development services; education service and local education authority software; solutions for central and local government services; and business process services. Further, it provides pension administration and software, pensions consulting, and data solutions; finance software, automation, and management information systems solutions; cloud, cyber security, digital connectivity, IT services, robotic process automation, and workplace IT solutions; and actuarial, defence, financial, healthcare, housing, legal, public safety, retail, retail banking, utility, and welfare and employability services. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is based in London, the United Kingdom.