IAA (NYSE:IAA) vs. Casey’s General Stores (NYSE:CASY) Critical Analysis

IAA (NYSE:IAA) and Casey’s General Stores (NASDAQ:CASY) are both auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares IAA and Casey’s General Stores’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IAA N/A N/A N/A
Casey’s General Stores 2.18% 14.95% 5.67%

Valuation and Earnings

This table compares IAA and Casey’s General Stores’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IAA N/A N/A N/A N/A N/A
Casey’s General Stores $9.35 billion 0.65 $203.89 million $5.51 29.91

Casey’s General Stores has higher revenue and earnings than IAA.

Analyst Ratings

This is a summary of recent ratings and recommmendations for IAA and Casey’s General Stores, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IAA 0 2 5 0 2.71
Casey’s General Stores 0 6 5 0 2.45

IAA currently has a consensus target price of $45.75, suggesting a potential upside of 1.22%. Casey’s General Stores has a consensus target price of $152.33, suggesting a potential downside of 7.56%. Given IAA’s stronger consensus rating and higher probable upside, equities research analysts clearly believe IAA is more favorable than Casey’s General Stores.

Institutional and Insider Ownership

90.1% of Casey’s General Stores shares are owned by institutional investors. 0.7% of Casey’s General Stores shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Casey’s General Stores pays an annual dividend of $1.16 per share and has a dividend yield of 0.7%. IAA does not pay a dividend. Casey’s General Stores pays out 21.1% of its earnings in the form of a dividend. Casey’s General Stores has raised its dividend for 16 consecutive years.

Summary

Casey’s General Stores beats IAA on 8 of the 11 factors compared between the two stocks.

IAA Company Profile

IAA, Inc. provides salvage vehicle auctions and related services. It offers salvage auction services, such as inbound transportation logistics, inspection, evaluation, salvage recovery, titling, and settlement administrative services. The company's salvage auctions facilitate the remarketing of damaged vehicles designated as total losses by insurance companies, charity donation vehicles, recovered stolen (or theft) vehicles, and low value used vehicles through live and online auctions. As of December 31, 2018, it operated 179 salvage vehicle auction sites in the United States and Canada; and 14 locations in the United Kingdom. Insurance Auto Auctions, Inc. serves insurance companies, used vehicle dealers, rental car and fleet leasing companies, auto lenders, non-profit organizations, and the general public. The company was founded in 1982 and is headquartered in Westchester, Illinois. IAA, Inc.(NYSE:IAA) operates independently of KAR Auction Services, Inc. as of June 28, 2019.

Casey’s General Stores Company Profile

Casey's General Stores, Inc., together with its subsidiaries, operates convenience stores under the Casey's and Casey's General Store names. The company's stores offer a selection of food, including freshly prepared foods, such as pizza, donuts, and sandwiches; beverage and tobacco products; health and beauty aids; automotive products; school supplies, housewares, and pet supplies; and other nonfood items. Its stores also provide fuel for sale on a self-service basis. In addition, the company operates two stores under the Tobacco City name primarily selling tobacco products; and one grocery store. As of March 7, 2019, it operated approximately 2,100 convenience stores in 16 states in the Midwest and the South. Casey's General Stores, Inc. was founded in 1959 and is headquartered in Ankeny, Iowa.

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