Contrasting Scully Royalty (NYSE:SRL) and IAC (NASDAQ:IAC)

Scully Royalty (NYSE:SRL) and IAC (NASDAQ:IAC) are both multi-sector conglomerates companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

42.0% of Scully Royalty shares are owned by institutional investors. Comparatively, 88.9% of IAC shares are owned by institutional investors. 1.9% of Scully Royalty shares are owned by insiders. Comparatively, 16.1% of IAC shares are owned by 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.

Profitability

This table compares Scully Royalty and IAC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scully Royalty	N/A	N/A	N/A
IAC	1.82%	2.29%	1.53%

Valuation and Earnings

This table compares Scully Royalty and IAC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scully Royalty	$25.77 million	3.52	-$15.02 million	N/A	N/A
IAC	$2.39 billion	1.18	-$104.03 million	$0.37	111.27

Scully Royalty has higher earnings, but lower revenue than IAC.

Risk & Volatility

Scully Royalty has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, IAC has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Scully Royalty and IAC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scully Royalty	1	0	0	0	1.00
IAC	1	5	9	0	2.53

IAC has a consensus price target of $53.14, suggesting a potential upside of 29.08%. Given IAC’s stronger consensus rating and higher probable upside, analysts clearly believe IAC is more favorable than Scully Royalty.

Summary

IAC beats Scully Royalty on 10 of the 12 factors compared between the two stocks.

About Scully Royalty

Scully Royalty Ltd. operates as an iron ore mining company in the Americas, Africa, Canada, Asia, and Europe. It operates through three segments: Royalty, Industrial, and Merchant Banking. The company holds royalty interest in the Scully iron ore mine located in the Province of Newfoundland and Labrador, Canada. It also engages in manufacturing, and medical supplies and services industries. In addition, the company offers merchant banking and financial services to small and medium sized enterprises; operates projects in resources and services; and holds two industrial real estate parks. Scully Royalty Ltd. was formerly known as MFC Bancorp Ltd. and changed its name to Scully Royalty Ltd. in June 2019. The company was incorporated in 2017 and is based in Shanghai, the People's Republic of China.

About IAC

IAC Inc., together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC/InterActiveCorp. The company is headquartered in New York, New York.