Serco Group (OTCMKTS:SECCF) versus Dexterra Group (OTCMKTS:HZNOF) Head-To-Head Comparison

Dexterra Group (OTCMKTS:HZNOF) and Serco Group (OTCMKTS:SECCF) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Institutional and Insider Ownership

40.2% of Dexterra Group shares are owned by institutional investors. Comparatively, 53.8% of Serco Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Dexterra Group and Serco Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dexterra Group	0	1	0	0	2.00
Serco Group	0	0	1	0	3.00

Dexterra Group presently has a consensus target price of $8.00, suggesting a potential upside of 83.49%. Given Dexterra Group’s higher probable upside, equities research analysts clearly believe Dexterra Group is more favorable than Serco Group.

Earnings and Valuation

This table compares Dexterra Group and Serco Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dexterra Group	N/A	N/A	N/A	$0.13	34.67
Serco Group	N/A	N/A	N/A	$0.01	200.61

Dexterra Group is trading at a lower price-to-earnings ratio than Serco Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Dexterra Group and Serco Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dexterra Group	N/A	N/A	N/A
Serco Group	N/A	N/A	N/A

Dividends

Dexterra Group pays an annual dividend of $0.24 per share and has a dividend yield of 5.5%. Serco Group pays an annual dividend of $0.07 per share and has a dividend yield of 3.9%. Dexterra Group pays out 190.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Serco Group pays out 786.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dexterra Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

About Dexterra Group

Dexterra Group Inc. provides support services for the creation, management, and operation of infrastructure in Canada. It operates through three segments: Integrated Facilities Management; Modular Solutions; and Workforce Accommodations, Forestry and Energy Services (WAFES). The Integrated Facilities Management segment delivers operation and maintenance solutions for built assets and infrastructure in the public and private sectors, including aviation, defence, education, rail, healthcare, and leisure. The Modular Solutions segment designs and manufactures buildings solutions for housing, commercial, residential, and industrial clients. The WAFES segment provides accommodations solutions, forestry services, and access solutions for the energy, mining, forestry, and construction sectors. It also offers facility operations and maintenance, technical and trades, cleaning and janitorial, food, and special services; open lodges, turn-key projects, construction, installation, and logistics, catering and operations, and structure supply services; tree planting, fire support, and vegetation management services; and relocatable structures, access matting, and soil stabilization and management services. The company was formerly known as Horizon North Logistics Inc. and changed its name to Dexterra Group Inc. in November 2020. Dexterra Group Inc. was founded in 1985 and is headquartered in Mississauga, Canada.

About Serco Group

Serco Group plc provides public services in the United Kingdom, Europe, North America, the Asia Pacific, and the Middle East. The company offers base and operational support engineering, and management and information, as well as nuclear, space, and maritime services for the defense sector; and custodial, asylum seeker accommodation, immigration detention, and detainee transport and monitoring services for the justice and immigration sectors. It also provides rail, ferry, and cycle operations; road traffic management; and air traffic control services to the transportation sector, as well as integrated facilities management, clinical and non-clinical support, and patient administration and contact services for the health sector. In addition, the company offers citizen services, including contact centers and case management; middle, back office, and IT; and employment and skills services. The company serves the United Kingdom and Canadian governments, devolved authorities, and other public sector customers; and federal and civilian agencies, and various state and municipal governments. Serco Group plc was founded in 1929 and is based in Hook, the United Kingdom.