Critical Analysis: Brink’s (NYSE:BCO) versus Boyd Group Services (OTCMKTS:BYDGF)
by Tristan Rich · The Markets DailyBoyd Group Services (OTCMKTS:BYDGF – Get Free Report) and Brink’s (NYSE:BCO – Get Free Report) are both mid-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
0.2% of Boyd Group Services shares are held by institutional investors. Comparatively, 95.0% of Brink’s shares are held by institutional investors. 1.0% of Brink’s shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Boyd Group Services and Brink’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Boyd Group Services | 0.27% | 2.70% | 0.91% |
| Brink’s | 3.30% | 87.18% | 4.95% |
Volatility & Risk
Boyd Group Services has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Brink’s has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Boyd Group Services and Brink’s, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Boyd Group Services | 0 | 0 | 4 | 0 | 3.00 |
| Brink’s | 0 | 2 | 2 | 0 | 2.50 |
Brink’s has a consensus price target of $154.00, indicating a potential upside of 46.04%. Given Brink’s’ higher possible upside, analysts clearly believe Brink’s is more favorable than Boyd Group Services.
Dividends
Boyd Group Services pays an annual dividend of $0.44 per share and has a dividend yield of 0.3%. Brink’s pays an annual dividend of $1.02 per share and has a dividend yield of 1.0%. Boyd Group Services pays out 118.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brink’s pays out 23.6% of its earnings in the form of a dividend. Brink’s has increased its dividend for 5 consecutive years. Brink’s is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Boyd Group Services and Brink’s”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Boyd Group Services | $3.07 billion | 1.11 | $24.54 million | $0.37 | 427.62 |
| Brink’s | $5.26 billion | 0.83 | $199.70 million | $4.32 | 24.41 |
Brink’s has higher revenue and earnings than Boyd Group Services. Brink’s is trading at a lower price-to-earnings ratio than Boyd Group Services, indicating that it is currently the more affordable of the two stocks.
Summary
Brink’s beats Boyd Group Services on 13 of the 17 factors compared between the two stocks.
About Boyd Group Services
Boyd Group Services Inc., together with its subsidiaries, operates non-franchised collision repair centers in North America. The company operates its locations under the Boyd Autobody & Glass and Assured Automotive names in Canada; and Gerber Collision & Glass name in the United States. It also operates as a retail auto glass operator under the Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority, and Autoglassonly.com names in the United States. In addition, the company operates a third-party administrator, Gerber National Claims Services that offers glass, emergency roadside, and first notice of loss services. It serves insurance companies and individual vehicle owners. The company was founded in 1990 and is headquartered in Winnipeg, Canada.
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.