Service Co. International (NYSE: SCI) and Yelp (NYSE:YELP) are both mid-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
This is a summary of current ratings and price targets for Service Co. International and Yelp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Service Co. International||1||0||4||0||2.60|
Service Co. International presently has a consensus target price of $44.50, indicating a potential upside of 14.99%. Yelp has a consensus target price of $43.55, indicating a potential downside of 3.68%. Given Service Co. International’s stronger consensus rating and higher probable upside, analysts clearly believe Service Co. International is more favorable than Yelp.
Institutional & Insider Ownership
87.0% of Service Co. International shares are held by institutional investors. Comparatively, 87.8% of Yelp shares are held by institutional investors. 6.2% of Service Co. International shares are held by insiders. Comparatively, 10.1% of Yelp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Service Co. International and Yelp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Service Co. International||$3.10 billion||2.31||$546.66 million||$1.55||24.97|
|Yelp||$846.81 million||4.46||$152.85 million||$0.07||645.86|
Service Co. International has higher revenue and earnings than Yelp. Service Co. International is trading at a lower price-to-earnings ratio than Yelp, indicating that it is currently the more affordable of the two stocks.
This table compares Service Co. International and Yelp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Service Co. International||17.66%||23.68%||2.38%|
Service Co. International pays an annual dividend of $0.68 per share and has a dividend yield of 1.8%. Yelp does not pay a dividend. Service Co. International pays out 43.9% of its earnings in the form of a dividend. Service Co. International has raised its dividend for 6 consecutive years.
Risk and Volatility
Service Co. International has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Yelp has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.
Service Co. International beats Yelp on 9 of the 17 factors compared between the two stocks.
About Service Co. International
Service Corporation International provides deathcare products and services in the United States and Canada. The company operates through Funeral and Cemetery segments. Its funeral service and cemetery operations comprise funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other businesses. The company also provides professional services relating to funerals and cremations, including the use of funeral facilities and motor vehicles; arranging and directing services; and removal, preparation, embalming, cremation, memorialization, and travel protection, as well as catering services. In addition, it offers funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, on-line and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise. Further, the company's cemeteries provide cemetery property interment rights, including developed lots, lawn crypts, mausoleum spaces, niches, and other cremation memorialization and interment options; and sells cemetery merchandise and services, including memorial markers and bases, outer burial containers, flowers and floral placements, graveside services, merchandise installations, and interments, as well as offers preneed cemetery merchandise and services. Service Corporation International offers its products and services under the Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, Funeraria del Angel, Making Everlasting Memories, Neptune Society, and Trident Society brands. As of December 31, 2017, it owned and operated 1,488 funeral service locations; and 473 cemeteries, including 281 funeral service/cemetery combination locations covering 45 states, 8 Canadian provinces, the District of Columbia, and Puerto Rico. The company was founded in 1962 and is headquartered in Houston, Texas.
Yelp Inc. operates a platform that connects people with local businesses in the United States, Canada, and internationally. The company's platform covers various local business categories, including restaurants, shopping, beauty and fitness, arts, entertainment and events, home and local services, health, nightlife, travel and hotel, auto, and others. It provides free and paid advertising products to businesses, as well as enables businesses to deliver targeted search advertising to local audiences through its Website and mobile application; and business listing products. The company's Yelp platform enables consumers to order flowers, purchase event tickets, and book spa and salon appointments. In addition, it offers Yelp Deals that allow local business owners to create promotional discounted deals for their products and services; and Gift Certificates products for local business owners to sell full-price gift certificates directly to customers through their business listing pages. Further, the company provides other services comprising Yelp Reservations that provide restaurants, nightlife, and other venues with the ability to offer online reservations directly from their Yelp business listing pages; and Yelp Nowait, a subscription-based waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as businesses to manage seating and server rotation. Its other services also include WiFi Marketing product for businesses to create on-premises WiFi access for customers and advertise products on the WiFi log-in page, as well as collect contact and social media information from customers. The company offers its products directly through its sales force; indirectly through partners; and online through its Website. Yelp Inc. was founded in 2004 and is headquartered in San Francisco, California.
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