Aaron’s (AAN) & MITCHAM INDUSTR/SH (MIND) Head-To-Head Review

Aaron’s (NYSE:AAN) and MITCHAM INDUSTR/SH (NASDAQ:MIND) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Dividends

Aaron’s pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. MITCHAM INDUSTR/SH does not pay a dividend. Aaron’s pays out 4.7% of its earnings in the form of a dividend. Aaron’s has increased its dividend for 11 consecutive years.

Volatility & Risk

Aaron’s has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, MITCHAM INDUSTR/SH has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Aaron’s and MITCHAM INDUSTR/SH, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aaron’s 0 2 7 0 2.78
MITCHAM INDUSTR/SH 0 0 0 0 N/A

Aaron’s currently has a consensus target price of $57.57, indicating a potential upside of 31.14%. Given Aaron’s’ higher possible upside, equities analysts plainly believe Aaron’s is more favorable than MITCHAM INDUSTR/SH.

Profitability

This table compares Aaron’s and MITCHAM INDUSTR/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aaron’s 8.39% 12.22% 7.96%
MITCHAM INDUSTR/SH -57.21% -31.57% -21.37%

Institutional and Insider Ownership

72.4% of MITCHAM INDUSTR/SH shares are held by institutional investors. 2.3% of Aaron’s shares are held by insiders. Comparatively, 9.8% of MITCHAM INDUSTR/SH shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Aaron’s and MITCHAM INDUSTR/SH’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aaron’s $3.38 billion 0.89 $292.53 million $2.56 17.15
MITCHAM INDUSTR/SH $48.28 million 0.94 -$21.06 million N/A N/A

Aaron’s has higher revenue and earnings than MITCHAM INDUSTR/SH.

Summary

Aaron’s beats MITCHAM INDUSTR/SH on 9 of the 14 factors compared between the two stocks.

Aaron’s Company Profile

Aaron's, Inc. operates as an omnichannel provider of lease-purchase solutions. It operates through three segments: Progressive Leasing, Aaron's Business, and DAMI. The company engages in the sale, lease ownership, and specialty retailing of furniture, consumer electronics, home appliances, and accessories. As of February 15, 2018, it operated approximately 1,726 company-operated and franchised stores in 47 states and Canada, as well as its e-commerce platform, Aarons.com. Aaron's, Inc. was founded in 1955 and is headquartered in Atlanta, Georgia.

MITCHAM INDUSTR/SH Company Profile

Mitcham Industries, Inc., through its subsidiaries, provides technology to the oceanographic, hydrographic, defense, seismic and maritime security industries worldwide. The company operates in two segments, Marine Technology Products, and Equipment Leasing. The Marine Technology Products segment develops, manufactures, and sells proprietary products. Its products include GunLink seismic source acquisition and control systems that provide operators of marine seismic surveys with precise monitoring and control of energy sources; BuoyLink RGPS tracking systems, which are used to offer precise positioning of marine seismic energy sources and streamers; Digishot energy source controllers; Sleeve Gun energy sources; and SeaLink product line of marine sensors and solid streamer systems. This segment also provides streamer weight collars, depth and pressure transducers, air control valves, and source array systems; spare and replacement parts; repair services, engineering services, training, field service operations, and umbilical termination; and equipment, consumables, systems integration, engineering hardware, and software maintenance support services. The Equipment Leasing segment leases seismic equipment for short-term primarily to seismic data acquisition contractors and oil field service providers. This segment is also involved in the sale of other seismic equipment of other manufacturers; and used equipment from its lease pool. Mitcham Industries, Inc. was founded in 1987 and is headquartered in Huntsville, Texas.

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