Financial Analysis: FIRSTGROUP/ADR (OTCMKTS:FGROY) & ROYAL MAIL PLC/ADR (OTCMKTS:ROYMY)

FIRSTGROUP/ADR (OTCMKTS:FGROY) and ROYAL MAIL PLC/ADR (OTCMKTS:ROYMY) are both transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Risk & Volatility

FIRSTGROUP/ADR has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, ROYAL MAIL PLC/ADR has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Dividends

ROYAL MAIL PLC/ADR pays an annual dividend of $0.73 per share and has a dividend yield of 12.2%. FIRSTGROUP/ADR does not pay a dividend. ROYAL MAIL PLC/ADR pays out 90.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares FIRSTGROUP/ADR and ROYAL MAIL PLC/ADR’s revenue, earnings per share and valuation.

ROYAL MAIL PLC/ADR has higher revenue and earnings than FIRSTGROUP/ADR.

Institutional and Insider Ownership

0.1% of ROYAL MAIL PLC/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares FIRSTGROUP/ADR and ROYAL MAIL PLC/ADR’s net margins, return on equity and return on assets.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for FIRSTGROUP/ADR and ROYAL MAIL PLC/ADR, as reported by MarketBeat.

Summary

ROYAL MAIL PLC/ADR beats FIRSTGROUP/ADR on 7 of the 8 factors compared between the two stocks.

About FIRSTGROUP/ADR

FirstGroup Plc engages in the provision of passenger transport services. It operates through the following segments: First Student, First Transit, Greyhound, First Bus, and First Rail. The First Student segment provides transportation among students in North America. The First Transit segment offers public transit management and contracting services in North America. The Greyhound segment refers to operation of schedules intercity couch transportation services in the United States and Canada. The First Bus segment is the operation of bus in United Kingdom and outside London. The First Rail segment is the operation and management of rail transportation with open access system. The company was founded on March 31, 1995 and is headquartered in Aberdeen, the United Kingdom.

About ROYAL MAIL PLC/ADR

Royal Mail plc, together with its subsidiaries, operates as an universal postal service provider in the United Kingdom, the United States, and other European countries. It offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. The company also provides services for the collection, sorting, and delivery of parcels and letters; and designs and produces stamps and philatelic items, as well as offers media and marketing mail services. In addition, it operates ground-based parcel delivery networks in Europe comprising the GLS network that covers 41 European countries and nation states through wholly-owned and partner companies. Further, the company provides express and logistics services. Additionally, it engages in property holdings activities; and provision of facilities management services. The company serves consumers, small and medium-sized enterprises, retailers, and other postal operators, as well as business-to-business and business-to-consumer sectors. Royal Mail plc was incorporated in 2013 and is headquartered in London, the United Kingdom.

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