Contrasting CAPITA (OTCMKTS:CTAGY) and BrightView (NYSE:BV)

BrightView (NYSE:BV) and CAPITA (OTCMKTS:CTAGY) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.

Earnings and Valuation

This table compares BrightView and CAPITA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BrightView	$2.77 billion	0.52	$66.40 million	$0.03	506.67
CAPITA	$3.09 billion	0.15	$98.01 million	N/A	N/A

CAPITA has higher revenue and earnings than BrightView.

Profitability

This table compares BrightView and CAPITA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BrightView	2.00%	8.78%	3.33%
CAPITA	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for BrightView and CAPITA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BrightView	1	1	5	0	2.57
CAPITA	0	0	0	0	0.00

BrightView currently has a consensus price target of $17.8167, indicating a potential upside of 17.21%. Given BrightView’s stronger consensus rating and higher possible upside, equities research analysts plainly believe BrightView is more favorable than CAPITA.

Volatility and Risk

BrightView has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, CAPITA has a beta of -0.2, indicating that its share price is 120% less volatile than the S&P 500.

Institutional and Insider Ownership

92.4% of BrightView shares are held by institutional investors. 2.2% of BrightView shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

BrightView beats CAPITA on 10 of the 12 factors compared between the two stocks.

About BrightView

BrightView Holdings, Inc., through its subsidiaries, provides commercial landscaping services in the United States. It operates through two segments, Maintenance Services and Development Services. The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance. Its customers' properties include corporate and commercial properties, homeowners associations, public parks, hotels and resorts, airport authorities, municipalities, hospitals and other healthcare facilities, educational institutions, restaurants and retail, and golf courses. This segment's customer base includes approximately 8,800 office parks and corporate campuses 7,100 residential communities, and 550 educational institutions. The Development Services segment offers landscape architecture and development services for new facilities and redesign projects. Its services include project design and management services, landscape architecture and installation, irrigation installation, tree moving and installation, pool and water features, sports field, and other services. BrightView Holdings, Inc. also operates as official field consultant to various league baseball. The company was founded in 1939 and is headquartered in Blue Bell, Pennsylvania.

About CAPITA

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally. It operates in two divisions: Public Service and Capita Experience divisions. The company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration. It also provides customer experience transformation, contact management, collection and debt management, complaint handling, customer experience system and software, acquisition and retention, and data and analytics. In addition, the company offers licensing and support, support, digital policing, and engineering practice; learning and development services; education service and local education authority software; solutions for central and local government services; and business process services. Further, it provides pension administration and software, pensions consulting, and data solutions; finance software, automation, and management information systems solutions; cloud, cyber security, digital connectivity, IT services, robotic process automation, and workplace IT solutions; and actuarial, defence, financial, healthcare, housing, legal, public safety, retail, retail banking, utility, and welfare and employability services. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is based in London, the United Kingdom.