Healthequity (NASDAQ:HQY) and Ritchie Bros. Auctioneers (NYSE:RBA) are both mid-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.
Risk & Volatility
Healthequity has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Ritchie Bros. Auctioneers has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.
This table compares Healthequity and Ritchie Bros. Auctioneers’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Healthequity||$287.24 million||16.33||$73.90 million||$0.95||79.04|
|Ritchie Bros. Auctioneers||$1.17 billion||3.17||$121.48 million||$1.08||31.58|
Ritchie Bros. Auctioneers has higher revenue and earnings than Healthequity. Ritchie Bros. Auctioneers is trading at a lower price-to-earnings ratio than Healthequity, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Healthequity and Ritchie Bros. Auctioneers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ritchie Bros. Auctioneers||2||6||2||0||2.00|
Healthequity currently has a consensus target price of $88.58, suggesting a potential upside of 17.97%. Ritchie Bros. Auctioneers has a consensus target price of $36.50, suggesting a potential upside of 7.01%. Given Healthequity’s stronger consensus rating and higher possible upside, equities analysts clearly believe Healthequity is more favorable than Ritchie Bros. Auctioneers.
This table compares Healthequity and Ritchie Bros. Auctioneers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ritchie Bros. Auctioneers||10.38%||14.68%||5.57%|
Insider and Institutional Ownership
96.1% of Healthequity shares are owned by institutional investors. Comparatively, 92.7% of Ritchie Bros. Auctioneers shares are owned by institutional investors. 4.0% of Healthequity shares are owned by insiders. Comparatively, 1.3% of Ritchie Bros. Auctioneers shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Ritchie Bros. Auctioneers pays an annual dividend of $0.72 per share and has a dividend yield of 2.1%. Healthequity does not pay a dividend. Ritchie Bros. Auctioneers pays out 66.7% of its earnings in the form of a dividend. Ritchie Bros. Auctioneers has raised its dividend for 16 consecutive years.
Healthequity beats Ritchie Bros. Auctioneers on 11 of the 17 factors compared between the two stocks.
Healthequity Company Profile
HealthEquity, Inc. provides various solutions for managing health care accounts, health reimbursement arrangements, and flexible spending accounts for health plans, insurance companies, and third-party administrators in the United States. The company offers healthcare saving and spending platform, a cloud-based platform for individuals to make health saving and spending decisions, pay healthcare bills, compare treatment options and prices, receive personalized benefit and clinical information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides mutual fund investment platform; and online-only investment advisory services through Advisor, a Web-based tool. In addition, the company offers health reimbursement and flexible spending arrangements solutions; and Employee Retirement Income Security Act's plan administration and investment services. HealthEquity, Inc. was founded in 2002 and is headquartered in Draper, Utah.
Ritchie Bros. Auctioneers Company Profile
Ritchie Bros. Auctioneers Incorporated, an asset management and disposition company, sells industrial equipment and other durable assets through its unreserved auctions, online marketplaces, listing services, and private brokerage services. The company sells a range of used and unused equipment, including earthmoving equipment, truck trailers, government surplus, oil and gas equipment, and other industrial assets. It also provides auction technology services for online bidding at live on site auctions. The company primarily sells equipment to its customers through unreserved auctions at 45 auction sites worldwide. Ritchie Bros. Auctioneers Incorporated was founded in 1958 and is headquartered in Burnaby, Canada.
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