Analyzing Brady Corporation (BRC) & Higher One Holdings (NYSE:ONE)

Brady Corporation (NYSE: BRC) and Higher One Holdings (NYSE:ONE) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Insider and Institutional Ownership

74.9% of Brady Corporation shares are held by institutional investors. 15.6% of Brady Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Brady Corporation and Higher One Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brady Corporation 8.64% 14.44% 8.84%
Higher One Holdings -26.77% -16.36% -10.01%

Risk & Volatility

Brady Corporation has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Higher One Holdings has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Valuation and Earnings

This table compares Brady Corporation and Higher One Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brady Corporation $1.11 billion 1.50 $156.45 million $1.85 17.57
Higher One Holdings N/A N/A N/A $0.16 32.19

Brady Corporation has higher revenue and earnings than Higher One Holdings. Brady Corporation is trading at a lower price-to-earnings ratio than Higher One Holdings, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Brady Corporation and Higher One Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brady Corporation 0 2 1 0 2.33
Higher One Holdings 0 0 0 0 N/A

Brady Corporation presently has a consensus target price of $37.67, indicating a potential upside of 15.90%. Given Brady Corporation’s higher probable upside, equities research analysts plainly believe Brady Corporation is more favorable than Higher One Holdings.

Dividends

Brady Corporation pays an annual dividend of $0.82 per share and has a dividend yield of 2.5%. Higher One Holdings does not pay a dividend. Brady Corporation pays out 44.3% of its earnings in the form of a dividend. Higher One Holdings has raised its dividend for 31 consecutive years.

Summary

Brady Corporation beats Higher One Holdings on 10 of the 13 factors compared between the two stocks.

Brady Corporation Company Profile

Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The Company has two segments: Identification Solutions (IDS) and Workplace Safety (WPS). The IDS segment includes identification and healthcare products, and the WPS segment includes workplace safety and compliance products. The IDS segment offers products that are manufactured under various brands, including the Brady brand, and are primarily sold through distribution to a range of maintenance, repair and operations (MRO) and original equipment manufacturing (OEM) customers, and through other channels. The WPS segment offers a range of product categories, such as safety and compliance signs, tags, and labels; informational and architectural signage; industrial warehouse and office equipment, and labor law compliance posters. Its brands include Electromark, Identicard, PromoVision, Scafftag, Seton and Emedco.

Higher One Holdings Company Profile

Higher One Holdings, Inc. is a provider of technology-based payment processing and refund disbursement services to higher education institutions and their students. The Company also provides campus communities with student-oriented banking services, which include user-friendly features, through its bank partners. The Company operates through two segments: Disbursements and Payments. The Disbursements segment includes its Refund Management disbursement service, which is offered to higher education institution clients, and the OneAccount, a Federal Deposit Insurance Corporation (FDIC)-insured online checking account that is offered to students, as well as faculty, staff and alumni. The Payments segment includes its CASHNet payment processing suite and its Campus Solutions suite, both of which enable higher education institutions to accept online payments, automate certain billing and processing functions, and offer tuition payment plans.

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