Head-To-Head Analysis: Boyd Group Services (OTCMKTS:BYDGF) & WK Kellogg (NYSE:KLG)

Boyd Group Services (OTCMKTS:BYDGF) and WK Kellogg (NYSE:KLG) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Earnings & Valuation

This table compares Boyd Group Services and WK Kellogg”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boyd Group Services	$3.07 billion	0.97	$24.54 million	$0.62	224.36
WK Kellogg	$2.71 billion	0.74	$72.00 million	$0.64	36.20

WK Kellogg has lower revenue, but higher earnings than Boyd Group Services. WK Kellogg is trading at a lower price-to-earnings ratio than Boyd Group Services, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Boyd Group Services has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, WK Kellogg has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500.

Insider & Institutional Ownership

0.2% of Boyd Group Services shares are held by institutional investors. Comparatively, 95.7% of WK Kellogg shares are held by institutional investors. 2.2% of WK Kellogg shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Boyd Group Services and WK Kellogg’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boyd Group Services	0.44%	2.83%	0.95%
WK Kellogg	2.14%	34.88%	5.81%

Analyst Ratings

This is a breakdown of current ratings and price targets for Boyd Group Services and WK Kellogg, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boyd Group Services	0	1	3	2	3.17
WK Kellogg	2	6	0	0	1.75

WK Kellogg has a consensus target price of $20.5714, indicating a potential downside of 11.21%. Given WK Kellogg’s higher possible upside, analysts plainly believe WK Kellogg is more favorable than Boyd Group Services.

Dividends

Boyd Group Services pays an annual dividend of $0.45 per share and has a dividend yield of 0.3%. WK Kellogg pays an annual dividend of $0.66 per share and has a dividend yield of 2.8%. Boyd Group Services pays out 72.6% of its earnings in the form of a dividend. WK Kellogg pays out 103.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. WK Kellogg has increased its dividend for 1 consecutive years. WK Kellogg is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

WK Kellogg beats Boyd Group Services on 10 of the 18 factors compared between the two stocks.

About Boyd Group Services

Boyd Group Services Inc., together with its subsidiaries, operates non-franchised collision repair centers in North America. The company operates its locations under the Boyd Autobody & Glass and Assured Automotive names in Canada; and Gerber Collision & Glass name in the United States. It also operates as a retail auto glass operator under the Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority, and Autoglassonly.com names in the United States. In addition, the company operates a third-party administrator, Gerber National Claims Services that offers glass, emergency roadside, and first notice of loss services. It serves insurance companies and individual vehicle owners. The company was founded in 1990 and is headquartered in Winnipeg, Canada.

About WK Kellogg

WK Kellogg Co operates as a food company in the United States, Canada, and the Caribbean. It manufactures, markets, and distributes ready-to-eat cereal products primarily under the Frosted Flakes, Special K, Froot Loops, Raisin Bran, Frosted Mini-Wheats, and Kashi brands. The company was formerly known as North America Cereal Co. and changed its name to WK Kellogg Co in March 2023. The company was incorporated in 2022 and is headquartered in Battle Creek, Michigan.