Service Corporation International (NYSE: SCI) and The Providence Service Corporation (NASDAQ:PRSC) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
Insider and Institutional Ownership
86.3% of Service Corporation International shares are owned by institutional investors. Comparatively, 92.9% of The Providence Service Corporation shares are owned by institutional investors. 6.2% of Service Corporation International shares are owned by company insiders. Comparatively, 18.9% of The Providence Service Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Service Corporation International and The Providence Service Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Service Corporation International||$3.08 billion||2.12||$820.15 million||$1.85||18.86|
|The Providence Service Corporation||$1.60 billion||0.42||$71.84 million||$4.65||10.65|
Service Corporation International has higher revenue and earnings than The Providence Service Corporation. The Providence Service Corporation is trading at a lower price-to-earnings ratio than Service Corporation International, indicating that it is currently the more affordable of the two stocks.
This table compares Service Corporation International and The Providence Service Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Service Corporation International||11.59%||24.67%||2.32%|
|The Providence Service Corporation||4.11%||6.94%||2.46%|
Service Corporation International pays an annual dividend of $0.60 per share and has a dividend yield of 1.7%. The Providence Service Corporation does not pay a dividend. Service Corporation International pays out 32.4% of its earnings in the form of a dividend. Service Corporation International has raised its dividend for 5 consecutive years.
This is a summary of current ratings and target prices for Service Corporation International and The Providence Service Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Service Corporation International||0||0||3||0||3.00|
|The Providence Service Corporation||0||1||1||0||2.50|
Service Corporation International presently has a consensus price target of $36.33, indicating a potential upside of 4.11%. The Providence Service Corporation has a consensus price target of $60.00, indicating a potential upside of 21.19%. Given The Providence Service Corporation’s higher probable upside, analysts plainly believe The Providence Service Corporation is more favorable than Service Corporation International.
Risk & Volatility
Service Corporation International has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, The Providence Service Corporation has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Service Corporation International beats The Providence Service Corporation on 9 of the 17 factors compared between the two stocks.
About Service Corporation International
Service Corporation International is a provider of deathcare products and services, with a network of funeral service locations and cemeteries. The Company’s segments include Funeral, Cemetery and Corporate. It conducts both funeral and cemetery operations in the United States and Canada. As December 31, 2016, it operated 1,502 funeral service locations and 470 cemeteries, including 281 funeral service/cemetery combination locations, which are geographically diversified across 45 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. It offers various brands, such as Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, and Funeraria del Angel. Its funeral service and cemetery operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and related businesses. It sells cemetery property, and funeral and cemetery merchandise and services.
About The Providence Service Corporation
The Providence Service Corporation (Providence) is a holding company. The Company, through its subsidiaries, is engaged in the provision of healthcare and workforce development services for public and private sector entities. The Company’s segments include Non-Emergency Transportation Services (NET Services), Workforce Development Services (WD Services) and Matrix Investment. NET Services segment includes nationwide provider of non-emergency medical transportation programs for state governments and managed care organizations. WD Services segment is a global provider of employment preparation and placement and legal offender rehabilitation services to eligible participants of government sponsored programs. Matrix Investment segment includes minority interest in nationwide provider of in-home care optimization and management solutions, including comprehensive health assessments (CHAs), to members of managed care organizations, accounted for as an equity method investment.
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