Edenred (OTCMKTS:EDNMY – Get Rating) and SGS (OTCMKTS:SGSOY – Get Rating) are both large-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Valuation and Earnings
This table compares Edenred and SGS’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Edenred||$1.93 billion||6.48||$370.31 million||N/A||N/A|
|SGS||$7.01 billion||2.58||$670.68 million||N/A||N/A|
SGS has higher revenue and earnings than Edenred.
Risk and Volatility
This is a summary of current ratings and price targets for Edenred and SGS, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Edenred presently has a consensus price target of $53.90, indicating a potential upside of 115.60%. Given Edenred’s stronger consensus rating and higher probable upside, research analysts plainly believe Edenred is more favorable than SGS.
This table compares Edenred and SGS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Edenred pays an annual dividend of $0.35 per share and has a dividend yield of 1.4%. SGS pays an annual dividend of $0.51 per share and has a dividend yield of 2.1%.
Edenred beats SGS on 5 of the 8 factors compared between the two stocks.
Edenred SA provides transactional solutions for companies, employees, and merchants worldwide. It offers employee benefit solutions, including Ticket Restaurant, Ticket Alimentación, Ticket Transporte, Ticket Cultura, and Ticket CESU; and fleet and mobility solutions, such as Ticket Log, Ticket Car, and UTA. The company also provides complementary solutions comprising corporate payment solutions that enhance the management of inter-company cash flows made through checks or transfers; PrePay solutions; incentives and rewards programs, including Ticket Compliments and Ticket Kadéos; and public social programs. Its solutions are used in various areas, such as meals, food, fuel, business travel, childcare, shopping, transportation, agriculture, education, healthcare, training, and human services. The company was founded in 1954 and is headquartered in Issy-les-Moulineaux, France.
SGS SA provides inspection, verification, testing, certification, and quality assurance services in Europe, Africa, the Middle East, the Americas, and the Asia Pacific. It operates in five segments: Connectivity & Products, Health & Nutrition, Industries & Environment, Natural Resources and Knowledge. The company provides laboratory testing, product inspection and consulting, process assessment, technical and transactional assistance; digital solutions, which include cybersecurity, the internet of things, digital platform, and mobile application services. In addition, it offers a range of testing, inspection and certification solutions for the crop science, food, health science, and cosmetics and hygiene industries; field services, technical assessment and advisory services; and services related to industrial, public health and safety, environmental testing, and public mandates. Further, it provides certification, training, supply chain assurance, technical consulting, and ESG assurance services; and laboratory outsourcing, commodities logistics, geochemistry, metallurgy, sustainability, and market intelligence solutions. The company serves the agriculture and food, chemical, construction, consumer and retail, energy, industrial manufacturing, life sciences, mining, oil and gas, public, and transportation sectors. SGS SA was founded in 1878 and is headquartered in Geneva, Switzerland.
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