Diversified Royalty (OTCMKTS:BEVFF) and Sharps Compliance (NASDAQ:SMED) are both small-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
Diversified Royalty pays an annual dividend of $0.17 per share and has a dividend yield of 8.0%. Sharps Compliance does not pay a dividend.
This table compares Diversified Royalty and Sharps Compliance’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Diversified Royalty and Sharps Compliance’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Diversified Royalty||$16.13 million||14.18||$8.91 million||N/A||N/A|
|Sharps Compliance||$40.14 million||1.28||-$670,000.00||($0.04)||-80.00|
Diversified Royalty has higher earnings, but lower revenue than Sharps Compliance.
Institutional & Insider Ownership
21.9% of Sharps Compliance shares are held by institutional investors. 12.0% of Diversified Royalty shares are held by company insiders. Comparatively, 20.7% of Sharps Compliance shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings for Diversified Royalty and Sharps Compliance, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sharps Compliance has a consensus target price of $4.50, suggesting a potential upside of 40.63%. Given Sharps Compliance’s higher probable upside, analysts clearly believe Sharps Compliance is more favorable than Diversified Royalty.
Volatility and Risk
Diversified Royalty has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Sharps Compliance has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.
Diversified Royalty beats Sharps Compliance on 7 of the 12 factors compared between the two stocks.
Diversified Royalty Company Profile
Diversified Royalty Corp., a multi-royalty corporation, engages in the acquisition of royalties from multi-location businesses and franchisors in North America. It primarily holds the Canadian and United States trademarks and other intellectual property rights related to the Original Joe's, Elephant & Castle, and State & Main restaurant businesses. The company was formerly known as BENEV Capital Inc. and changed its name to Diversified Royalty Corp. in October 2014. Diversified Royalty Corp. was founded in 1992 and is headquartered in Vancouver, Canada.
Sharps Compliance Company Profile
Sharps Compliance Corp. provides medical, pharmaceutical, and hazardous waste management services in the United States. It offers Sharps Recovery System for the containment, transportation, treatment, and tracking of medical waste and used healthcare materials generated outside the hospital and health care facility settings; TakeAway Medication Recovery System, a solution that facilitates the proper disposal of unused medications; MedSafe, a solution for the safe collection, transportation, and proper disposal of unwanted and expired prescription medications; and ComplianceTRAC, a Web-based compliance and training program. The company also provides Route-Based Pickup Service, a waste management service, which offers medical and hazardous waste pick-up services; TakeAway Recycle System, a solution for the collection and recycling of single-use medical devices from surgical centers and other healthcare facilities; and Universal Waste Shipback Systems, a solution for the collection, transportation, and recycling of light bulbs, batteries, and other mercury containing devices. In addition, it offers other solutions, such as TakeAway Environmental Return System, SharpsTracer, Sharps Secure, Needle Disposal System, Complete Needle Collection and Disposal System, Pitch-It IV Poles, Asset Return System, and Spill Kit and Recovery System, as well as Sharps MWMS, a medical waste management system. The company serves customers in home health care, retail clinics and immunizing pharmacies, pharmaceutical manufacturers, professional offices, assisted living and long-term care facilities, government, consumers, and commercial markets, as well as distributors. Sharps Compliance Corp. was founded in 1992 and is based in Houston, Texas.
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