Head-To-Head Review: Monro Muffler Brake (NASDAQ:MNRO) & Emerald (NYSE:EEX)

Emerald (NYSE:EEX) and Monro Muffler Brake (NASDAQ:MNRO) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Dividends

Emerald pays an annual dividend of $0.06 per share and has a dividend yield of 1.2%. Monro Muffler Brake pays an annual dividend of $1.12 per share and has a dividend yield of 7.8%. Emerald pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monro Muffler Brake pays out -167.2% of its earnings in the form of a dividend. Monro Muffler Brake is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Emerald and Monro Muffler Brake”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emerald	$398.80 million	2.44	$2.20 million	$0.03	163.00
Monro Muffler Brake	$1.20 billion	0.36	-$5.18 million	($0.67)	-21.52

Emerald has higher earnings, but lower revenue than Monro Muffler Brake. Monro Muffler Brake is trading at a lower price-to-earnings ratio than Emerald, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Emerald has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Monro Muffler Brake has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Profitability

This table compares Emerald and Monro Muffler Brake’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Emerald	1.57%	1.75%	0.63%
Monro Muffler Brake	-1.59%	2.49%	0.95%

Institutional & Insider Ownership

14.9% of Emerald shares are held by institutional investors. 4.0% of Emerald shares are held by insiders. Comparatively, 2.2% of Monro Muffler Brake shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Emerald and Monro Muffler Brake, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emerald	0	0	2	0	3.00
Monro Muffler Brake	0	1	2	0	2.67

Emerald currently has a consensus price target of $7.90, indicating a potential upside of 61.55%. Monro Muffler Brake has a consensus price target of $17.3333, indicating a potential upside of 20.20%. Given Emerald’s stronger consensus rating and higher probable upside, equities analysts plainly believe Emerald is more favorable than Monro Muffler Brake.

Summary

Emerald beats Monro Muffler Brake on 10 of the 15 factors compared between the two stocks.

About Emerald

Emerald Holding, Inc. operates business-to-business (B2B) trade shows in the United States. The company provides B2B trade show franchises; and B2B print publications and digital media products, which provide industry specific business news and information across various sectors. It also offers B2B e-commerce and digital merchandising solutions to manufacturers and retailers through Elastic Suite and Bulletin platforms. The company serves retail, design, technology, equipment, and safety and security. Emerald Holding, Inc. was incorporated in 2013 and is headquartered in New York, New York.

About Monro Muffler Brake

Monro, Inc. provides automotive undercar repair, and tire sales and services in the United States. It offers replacement tires and tire related services, automotive undercar repair services, and routine maintenance services primarily to passenger cars, light trucks, and vans. The company also provides other products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. In addition, it operates stores under the brand names of Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery's Tire & Auto Care, Mountain View Tire & Auto Service, and Tire Barn Warehouse. The company was founded in 1957 and is headquartered in Rochester, New York.