Critical Comparison: Core-Mark (CORE) & BEST (BSTI)

Core-Mark (NASDAQ: CORE) and BEST (NYSE:BSTI) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Valuation & Earnings

This table compares Core-Mark and BEST’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Core-Mark $14.53 billion 0.10 $54.20 million $0.90 34.87
BEST $1.30 billion 2.62 -$201.12 million N/A N/A

Core-Mark has higher revenue and earnings than BEST.

Insider and Institutional Ownership

98.3% of Core-Mark shares are owned by institutional investors. Comparatively, 13.3% of BEST shares are owned by institutional investors. 2.4% of Core-Mark shares are owned 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.

Profitability

This table compares Core-Mark and BEST’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Core-Mark 0.27% 9.90% 3.47%
BEST N/A N/A N/A

Dividends

Core-Mark pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. BEST does not pay a dividend. Core-Mark pays out 44.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings for Core-Mark and BEST, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Core-Mark 0 1 3 0 2.75
BEST 0 0 8 0 3.00

Core-Mark currently has a consensus price target of $39.00, indicating a potential upside of 24.28%. BEST has a consensus price target of $14.92, indicating a potential upside of 61.30%. Given BEST’s stronger consensus rating and higher possible upside, analysts plainly believe BEST is more favorable than Core-Mark.

Summary

Core-Mark beats BEST on 8 of the 13 factors compared between the two stocks.

Core-Mark Company Profile

Core-Mark Holding Company, Inc. is a wholesale distributor to the convenience retail industry in North America. The Company provides sales, marketing, distribution and logistics services. As of December 31, 2016, the Company offered services to over 43,000 customer locations across the United States and Canada through 30 distribution centers. The Company’s segments include the United States, Canada and Corporate. The Company’s primary customer base consists of traditional convenience stores, as well as alternative outlets selling consumer packaged goods. The Company’s traditional convenience store customers include various national and super-regional convenience store operators, as well as independently owned convenience stores. Its alternative outlet customers include a range of store formats, including grocery stores, drug stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos and hardware stores.

BEST Company Profile

BEST Inc. is engaged in providing supply chain solutions. The Company offers a cloud based platform, BEST Cloud which is integration of online and offline retail to offer delivery. It provides technology-enabled solutions to its users. The Company’s service offerings include BEST supply chain management, BEST express, BEST freight, BEST store+, BEST global, BEST cargo and BEST Ucargo. BEST supply chain management offers its solutions in a range of categories, including: cloud OFCs, which offer warehouse management, in-warehouse processing and order fulfillment services to customers; transportation services, which provides transportation services and coordinate shipments to and from locations. It offer transportation services from factories to consumers includes full truckload (FTL), less-than-truckload (LTL), regional distribution, intra-city distribution and other transportation services. BEST store+ offers a door-to-door integrated cross-border supply chain services.

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