Financial Contrast: ACV Auctions (NYSE:ACVA) vs. Brink’s (NYSE:BCO)

Brink’s (NYSE:BCO) and ACV Auctions (NYSE:ACVA) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.

Volatility & Risk

Brink’s has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, ACV Auctions has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Valuation & Earnings

This table compares Brink’s and ACV Auctions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brink’s	$5.48 billion	0.84	$199.70 million	$4.32	25.95
ACV Auctions	$759.61 million	2.33	-$66.14 million	($0.36)	-28.93

Brink’s has higher revenue and earnings than ACV Auctions. ACV Auctions is trading at a lower price-to-earnings ratio than Brink’s, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

95.0% of Brink’s shares are held by institutional investors. Comparatively, 88.5% of ACV Auctions shares are held by institutional investors. 1.0% of Brink’s shares are held by company insiders. Comparatively, 4.4% of ACV Auctions shares are held by company 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.

Profitability

This table compares Brink’s and ACV Auctions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brink’s	3.30%	87.18%	4.95%
ACV Auctions	-7.88%	-6.01%	-2.22%

Analyst Recommendations

This is a breakdown of recent ratings for Brink’s and ACV Auctions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brink’s	0	2	2	0	2.50
ACV Auctions	4	5	5	1	2.20

Brink’s presently has a consensus price target of $154.00, suggesting a potential upside of 37.37%. ACV Auctions has a consensus price target of $9.50, suggesting a potential downside of 8.79%. Given Brink’s’ stronger consensus rating and higher probable upside, analysts plainly believe Brink’s is more favorable than ACV Auctions.

Summary

Brink’s beats ACV Auctions on 10 of the 15 factors compared between the two stocks.

About Brink’s

The Brink’s Co. engages in providing cash management services, digital retail solutions, and ATM managed services. It operates through the following geographical segments: North America, Latin America, Europe, and Rest of World. The North America segment operates in the U.S. and Canada. The Latin America segment refers to the operations in Latin American countries. The Europe segment relates to operations in European countries. The Rest of World segment focuses on the operations in the Middle East, Africa, and Asia. The company was founded by Perry Brink and Fidelia Brink on May 5, 1859 and is headquartered in Richmond, VA.

About ACV Auctions

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. It also provides data services that offer insights into the condition and value of used vehicles, as well as offers customer financing services. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.