Critical Analysis: Casey’s General Stores (NASDAQ:CASY) & IAA (NASDAQ:IAA)

Casey’s General Stores (NASDAQ:CASY) and IAA (NYSE:IAA) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

90.4% of Casey’s General Stores shares are held by institutional investors. 0.7% of Casey’s General Stores shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.



Analyst Recommendations

This is a breakdown of current recommendations for Casey’s General Stores and IAA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Casey’s General Stores 0 6 5 0 2.45
IAA 0 2 5 0 2.71

Casey’s General Stores currently has a consensus price target of $152.33, suggesting a potential downside of 6.41%. IAA has a consensus price target of $45.75, suggesting a potential upside of 2.17%. Given IAA’s stronger consensus rating and higher probable upside, analysts plainly believe IAA is more favorable than Casey’s General Stores.

Dividends

Casey’s General Stores pays an annual dividend of $1.16 per share and has a dividend yield of 0.7%. IAA does not pay a dividend. Casey’s General Stores pays out 21.1% of its earnings in the form of a dividend. Casey’s General Stores has raised its dividend for 16 consecutive years.

Earnings & Valuation

This table compares Casey’s General Stores and IAA’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Casey’s General Stores $9.35 billion 0.64 $203.89 million $5.51 29.54
IAA N/A N/A N/A N/A N/A

Casey’s General Stores has higher revenue and earnings than IAA.

Profitability

This table compares Casey’s General Stores and IAA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Casey’s General Stores 2.18% 14.95% 5.67%
IAA N/A N/A N/A

Summary

Casey’s General Stores beats IAA on 8 of the 11 factors compared between the two stocks.

About Casey’s General Stores

Casey's General Stores, Inc., together with its subsidiaries, operates convenience stores under the Casey's and Casey's General Store names. The company's stores offer a selection of food, including freshly prepared foods, such as pizza, donuts, and sandwiches; beverage and tobacco products; health and beauty aids; automotive products; school supplies, housewares, and pet supplies; and other nonfood items. Its stores also provide fuel for sale on a self-service basis. In addition, the company operates two stores under the Tobacco City name primarily selling tobacco products; and one grocery store. As of March 7, 2019, it operated approximately 2,100 convenience stores in 16 states in the Midwest and the South. Casey's General Stores, Inc. was founded in 1959 and is headquartered in Ankeny, Iowa.

About IAA

IAA, Inc. provides salvage vehicle auctions and related services. It offers salvage auction services, such as inbound transportation logistics, inspection, evaluation, salvage recovery, titling, and settlement administrative services. The company's salvage auctions facilitate the remarketing of damaged vehicles designated as total losses by insurance companies, charity donation vehicles, recovered stolen (or theft) vehicles, and low value used vehicles through live and online auctions. As of December 31, 2018, it operated 179 salvage vehicle auction sites in the United States and Canada; and 14 locations in the United Kingdom. Insurance Auto Auctions, Inc. serves insurance companies, used vehicle dealers, rental car and fleet leasing companies, auto lenders, non-profit organizations, and the general public. The company was founded in 1982 and is headquartered in Westchester, Illinois. IAA, Inc.(NYSE:IAA) operates independently of KAR Auction Services, Inc. as of June 28, 2019.

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