Rent-A-Center (NASDAQ:RCII) and Black Diamond Group (OTCMKTS:BDIMF) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.
Institutional and Insider Ownership
94.6% of Rent-A-Center shares are held by institutional investors. 0.9% of Rent-A-Center shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Rent-A-Center and Black Diamond Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Black Diamond Group||0||0||0||0||N/A|
Rent-A-Center currently has a consensus price target of $14.19, indicating a potential downside of 17.24%. Given Rent-A-Center’s higher probable upside, research analysts clearly believe Rent-A-Center is more favorable than Black Diamond Group.
This table compares Rent-A-Center and Black Diamond Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Black Diamond Group||-53.71%||-6.11%||-3.36%|
Risk & Volatility
Rent-A-Center has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Black Diamond Group has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.
Earnings and Valuation
This table compares Rent-A-Center and Black Diamond Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rent-A-Center||$2.70 billion||0.34||$6.65 million||($0.54)||-31.76|
|Black Diamond Group||$120.79 million||0.74||-$73.59 million||N/A||N/A|
Rent-A-Center has higher revenue and earnings than Black Diamond Group.
Rent-A-Center beats Black Diamond Group on 9 of the 11 factors compared between the two stocks.
Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a rent-to-own basis. The company operates through four segments: Core U.S., Acceptance Now, Mexico, and Franchising. It offers durable products, such as consumer electronics; appliances; computers, including tablets; smartphones; and furniture, including accessories under rental purchase agreements. The company also provides merchandise on an installment sales basis; and offers the rent-to-own transaction to consumers who do not qualify for financing from the traditional retailer through kiosks within retailer's locations. It operates retail installment sales stores under the Get It Now and Home Choice names; and rent-to-own and franchised rent-to-own stores under the Rent-A-Centre, ColorTyme, and RimTyme names. As of December 31, 2017, the company owned and operated approximately 2,381 stores in the United States, Canada, and Puerto Rico, including 45 retail installment sales stores; 1,106 Acceptance Now staffed locations in 42 states and Puerto Rico; 125 Acceptance Now Direct locations; and 131 stores in Mexico, as well as franchised 225 rent-to-own stores in 31 states under the Rent-A-Center, ColorTyme, and RimTyme names. Rent-A-Center, Inc. was founded in 1986 and is headquartered in Plano, Texas.
About Black Diamond Group
Black Diamond Group Limited rents and sells workspace and modular workforce accommodation solutions. It operates through four segments: BOXX Modular, Black Diamond Camps & Lodging, Black Diamond Energy Services, and Black Diamond International. The BOXX Modular segment provides modular space rentals to customers in construction, real estate development, manufacturing, education, financial institutions, resource industries, and government agencies in North America. Its products include office units, lavatories, storage units, large multi-unit office complexes, classroom facilities, high security modular buildings, custom manufactured modular facilities, and blast resistant structures. This segment also sells new and used space rentals units; and provides delivery, installation, project management, and ancillary products and services. The Camps & Lodging segment provides workforce accommodation solutions, such as camps with on-site management of catering, housekeeping, front desk services, as well as fresh water and waste water management, electricity, television, telephone, Internet, and the provision of consumables, such as diesel and propane. The Energy Services segment provides equipment rentals and accommodations to customers in the oil and gas industry throughout western Canada and the Midwest and western United States. This segment offers accommodations, which consist of single and multi-unit complexes; and surface rentals, including various types of equipment that support drilling, completion, and production activities. The segment also provides installation, delivery, maintenance, and catering services. The International segment rents and sells remote workforce housing and modular space rental solutions primarily in Australia. This segment serves customers in resources, oil and gas, construction, general industry, government, and education sectors. The company was founded in 2003 and is headquartered in Calgary, Canada.
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