Head to Head Analysis: Crawford & Company (NYSE:CRD.B) vs. Secom (OTCMKTS:SOMLY)

Crawford & Company (NYSE:CRD.B) and Secom (OTCMKTS:SOMLY) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Crawford & Company and Secom, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crawford & Company	1	0	0	0	1.00
Secom	0	0	0	0	0.00

Insider & Institutional Ownership

11.0% of Crawford & Company shares are owned by institutional investors. 51.0% of Crawford & Company 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.

Earnings & Valuation

This table compares Crawford & Company and Secom”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crawford & Company	$1.31 billion	0.36	$19.63 million	$0.36	26.76
Secom	$8.35 billion	1.94	$748.41 million	$0.45	22.27

Secom has higher revenue and earnings than Crawford & Company. Secom is trading at a lower price-to-earnings ratio than Crawford & Company, indicating that it is currently the more affordable of the two stocks.

Dividends

Crawford & Company pays an annual dividend of $0.30 per share and has a dividend yield of 3.1%. Secom pays an annual dividend of $0.10 per share and has a dividend yield of 1.0%. Crawford & Company pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Secom pays out 22.2% of its earnings in the form of a dividend.

Volatility and Risk

Crawford & Company has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Secom has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Profitability

This table compares Crawford & Company and Secom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crawford & Company	1.37%	24.21%	5.46%
Secom	8.94%	7.86%	5.32%

About Crawford & Company

Crawford & Co. engages in the provision of claims management and outsourcing solutions to carriers, brokers, and corporates. It operates through the following segments: Crawford Loss Adjusting, Crawford TPA Solutions, and Crawford Platform Solutions. The Crawford Loss Adjusting segment consists of adjusting services provided to insurance companies and self-insured entities related to property and casualty losses caused by physical damage to commercial and residential real property and certain types of personal property. The Crawford TPA Solutions segment provides third party administration for workers’ compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers, and insurers worldwide. The Crawford Platform Solutions segment is involved in the management of contractor networks and the provision of claims management services to insurance companies and self-insured entities related to property, casualty, and catastrophic losses. The company was founded by Jim Crawford in 1941 and is headquartered in Peachtree Corners, GA.

About Secom

SECOM CO., LTD., together with its subsidiaries, provides security services in Japan and internationally. The company operates through Security Services, Fire Protection Services, Medical Services, Insurance Services, Geospatial Information Services, BPO and ICT Services, and Other Services. The Security Services segment offers static guard, armored car, merchandise, and other services, as well as online security systems. The Fire Protection Services segment provides fire alarm systems, fire extinguishing systems, and maintenance services to office buildings, production facilities, tunnels, cultural properties, ships, and residences. The Medical Services segment offers home nursing, pharmaceutical dispensing, home delivery services, health and preventative care services, and personal and outpatient care services; and cloud-based medical reporting services and SECOM LINKus application. This segment also operates the general hospital and residences for seniors; and sells medical equipment and pharmaceuticals. The Insurance Services Segment provides fire insurance, automobile insurance, and cancer treatment insurance services. The Geospatial Information Services segment offers geospatial information services to public-sector entities, such as national and local governments; private sector customers; and overseas government agencies. The BPO and ICT Services segment provides contact centers and back office support services, data center, disaster preparedness, information security, and cloud-based services, as well as SaaS solutions. The Other Services segment offers real estate leasing, construction, and installation services. The company was incorporated in 1962 and is headquartered in Tokyo, Japan.