Financial Contrast: Nuvei (NASDAQ:NVEI) & Ritchie Bros. Auctioneers (NYSE:RBA)

Nuvei (NASDAQ:NVEIGet Rating) and Ritchie Bros. Auctioneers (NYSE:RBAGet Rating) are both mid-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Earnings and Valuation

This table compares Nuvei and Ritchie Bros. Auctioneers’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nuvei $724.53 million 6.17 $102.29 million $0.51 62.04
Ritchie Bros. Auctioneers $1.42 billion 5.06 $151.87 million $2.64 24.49

Ritchie Bros. Auctioneers has higher revenue and earnings than Nuvei. Ritchie Bros. Auctioneers is trading at a lower price-to-earnings ratio than Nuvei, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Nuvei and Ritchie Bros. Auctioneers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nuvei 0 4 10 0 2.71
Ritchie Bros. Auctioneers 3 3 2 0 1.88

Nuvei currently has a consensus price target of $66.92, indicating a potential upside of 111.49%. Ritchie Bros. Auctioneers has a consensus price target of $64.00, indicating a potential downside of 1.02%. Given Nuvei’s stronger consensus rating and higher probable upside, analysts clearly believe Nuvei is more favorable than Ritchie Bros. Auctioneers.

Institutional and Insider Ownership

29.0% of Nuvei shares are owned by institutional investors. Comparatively, 82.5% of Ritchie Bros. Auctioneers shares are owned by institutional investors. 0.7% of Ritchie Bros. Auctioneers shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Nuvei and Ritchie Bros. Auctioneers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nuvei 9.08% 9.12% 5.15%
Ritchie Bros. Auctioneers 18.78% 27.06% 9.63%

Summary

Ritchie Bros. Auctioneers beats Nuvei on 8 of the 13 factors compared between the two stocks.

About Nuvei

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Nuvei Corporation provides payment technology solutions to merchants and partners in North America, Europe, the Middle East and Africa, Latin America, and the Asia Pacific. It provides a suite of payment solutions to support lifecycle of a transaction across mobile or in-app, online, unattended, and in-store channels. The company sells and distributes its solutions through direct sales, indirect sales for small-and-medium sized businesses, and eCommerce resellers. Nuvei Corporation was founded in 2003 and is headquartered in Montreal, Canada.

About Ritchie Bros. Auctioneers

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Ritchie Bros. Auctioneers Incorporated, an asset management and disposition company, sells industrial equipment and other durable assets through its unreserved auctions, online marketplaces, listing services, and private brokerage services. It sells a range of used and unused commercial assets, including earthmoving equipment, truck tractors and trailers, government surplus, oil and gas equipment, and other industrial assets, as well as construction and heavy machinery. The company also offers live auction events with online bidding. It sells used equipment to its customers through live unreserved auctions at 40 auction sites worldwide. The company serves construction, transportation, agriculture, energy, oil and gas, mining, and forestry sectors. It operates in the United States, Canada, Australia, the United Arab Emirates, the Netherlands, Europe, the Middle East, Asia, and internationally. Ritchie Bros. Auctioneers Incorporated was founded in 1958 and is headquartered in Burnaby, Canada.

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