Head to Head Review: G&K Services (GKSR) & Acacia Research Corporation (ACTG)

G&K Services (NASDAQ: GKSR) and Acacia Research Corporation (NASDAQ:ACTG) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Earnings and Valuation

This table compares G&K Services and Acacia Research Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
G&K Services N/A N/A N/A N/A N/A
Acacia Research Corporation $111.94 million 1.90 $13.80 million ($0.57) -7.37

Acacia Research Corporation has higher revenue and earnings than G&K Services.

Institutional & Insider Ownership

70.9% of Acacia Research Corporation shares are held by institutional investors. 2.8% of Acacia Research Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares G&K Services and Acacia Research Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
G&K Services 3.79% 9.12% 4.03%
Acacia Research Corporation -25.64% -1.06% -0.95%

Analyst Recommendations

This is a summary of recent ratings for G&K Services and Acacia Research Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
G&K Services 0 0 0 0 N/A
Acacia Research Corporation 1 0 1 0 2.00

Acacia Research Corporation has a consensus price target of $6.50, indicating a potential upside of 54.76%. Given Acacia Research Corporation’s higher possible upside, analysts plainly believe Acacia Research Corporation is more favorable than G&K Services.

Summary

Acacia Research Corporation beats G&K Services on 5 of the 8 factors compared between the two stocks.

About G&K Services

G&K Services, Inc. is a service-focused provider of branded uniform and facility services programs. The Company provides a range of workwear and protective safety apparel through rental and direct purchase programs. The Company also supplies various facility products and services, including floor mats, towels, mops, restroom hygiene products, and first aid supplies. It also manufactures certain work apparel garments that are used to support its garment rental and direct purchase programs. It operates in two segments: United States (includes the Dominican Republic) and Canada. The Company operated from approximately 160 locations, as of July 2, 2016. The Company serves a diverse base of customer locations in various industries, including automotive, warehousing, distribution, transportation, energy, manufacturing, food processing, retail, restaurants, construction and trades, hospitality, government, healthcare and others.

About Acacia Research Corporation

Acacia Research Corporation, through its subsidiaries, invests in, licenses and enforces patented technologies. The Company’s operating subsidiaries partner with inventors and patent owners, applying their legal and technology expertise to patent assets to unlock the financial value in their patented inventions. The Company’s operating subsidiaries assist patent owners with the prosecution and development of their patent portfolios, the protection of their patented inventions from unauthorized use, the generation of licensing revenue from users of their patented technologies and, where necessary, with the enforcement against unauthorized users of their patented technologies through the filing of patent infringement litigation. The Company’s operating subsidiaries own or control the rights to multiple patent portfolios, which include the United States patents and certain foreign counterparts, covering technologies used in a range of industries.

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