Comparing Healthcare Services Group (NASDAQ:HCSG) & RB Global (NYSE:RBA)

RB Global (NYSE:RBA) and Healthcare Services Group (NASDAQ:HCSG) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Volatility and Risk

RB Global has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Healthcare Services Group has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Insider & Institutional Ownership

95.4% of RB Global shares are held by institutional investors. Comparatively, 98.0% of Healthcare Services Group shares are held by institutional investors. 0.6% of RB Global shares are held by company insiders. Comparatively, 2.9% of Healthcare Services Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for RB Global and Healthcare Services Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RB Global	0	3	6	1	2.80
Healthcare Services Group	0	4	6	0	2.60

RB Global currently has a consensus price target of $126.29, suggesting a potential upside of 44.69%. Healthcare Services Group has a consensus price target of $26.67, suggesting a potential upside of 24.44%. Given RB Global’s stronger consensus rating and higher possible upside, equities analysts clearly believe RB Global is more favorable than Healthcare Services Group.

Earnings and Valuation

This table compares RB Global and Healthcare Services Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RB Global	$4.59 billion	3.45	$423.10 million	$2.33	37.46
Healthcare Services Group	$1.84 billion	0.80	$59.06 million	$1.72	12.46

RB Global has higher revenue and earnings than Healthcare Services Group. Healthcare Services Group is trading at a lower price-to-earnings ratio than RB Global, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares RB Global and Healthcare Services Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RB Global	9.99%	12.37%	5.58%
Healthcare Services Group	6.59%	18.97%	11.96%

Summary

RB Global beats Healthcare Services Group on 9 of the 14 factors compared between the two stocks.

About RB Global

RB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution. The company's brands include GovPlanet, an online marketplace for the sale of government and military assets; RB Auction, an onsite and online marketplace for selling and buying used equipment; IronPlanet, an online marketplace for selling and buying used equipment; Marketplace-E, an online solution that make offers/buy now format; Rouse Appraisals, a certified appraisal service solution; Ritchie List Mascus, an online equipment listing service and B2B dealer portal; CSAToday, an online reporting and analysis tool that gives sellers the ability to manage their vehicle assets and monitor sales performance; and Catastrophe Response Services. In addition, it offers title, data, transportation and logistics, refurbishing, inspection, and financial services. It serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.

About Healthcare Services Group

Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary. The Housekeeping segment engages in the cleaning, disinfecting, and sanitizing of resident rooms and common areas of the customers' facilities, as well as laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at the customers' facilities. The Dietary segment provides food purchasing, meal preparation, and professional dietitian services, which include the development of menus that meet the dietary needs of residents; and on-site management and clinical consulting services to facilities. It serves long-term and post-acute care facilities, hospitals, and the healthcare industry through referrals and solicitation of target facilities. The company was incorporated in 1976 and is based in Bensalem, Pennsylvania.