Critical Contrast: Greene King (GKNGY) & Cannae (CNNE)

Greene King (OTCMKTS: GKNGY) and Cannae (NYSE:CNNE) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Insider and Institutional Ownership

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79.1% of Cannae shares are held by institutional investors. 6.0% of Cannae shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Greene King and Cannae, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Greene King 0 0 0 0 N/A
Cannae 0 0 0 0 N/A

Dividends

Greene King pays an annual dividend of $0.87 per share and has a dividend yield of 7.0%. Cannae does not pay a dividend. Greene King pays out 47.5% of its earnings in the form of a dividend.

Volatility & Risk

Greene King has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Cannae has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Valuation and Earnings

This table compares Greene King and Cannae’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Greene King $2.87 billion 0.67 $196.23 million $1.83 6.78
Cannae $1.17 billion 1.13 $108.80 million $1.54 12.19

Greene King has higher revenue and earnings than Cannae. Greene King is trading at a lower price-to-earnings ratio than Cannae, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Greene King and Cannae’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Greene King N/A N/A N/A
Cannae 7.37% 2.21% 1.11%

Summary

Cannae beats Greene King on 8 of the 12 factors compared between the two stocks.

Greene King Company Profile

Greene King plc operates as a pub retailer and brewer in the United Kingdom. The company operates through Pub Company, Pub Partners, and Brewing & Brands segments. Its retail brands and formats include Greene King Local Pubs, Hungry Horse, Flaming Grill, Farmhouse Inns, and Chef & Brewer. The company is also involved in brewing, marketing, and selling beer under the Greene King IPA, Old Speckled Hen, Abbot Ale, and Belhaven Best brands. In addition, Greene King plc engages in the employment, financing, pension trustee, and property businesses. It operates 2,924 pubs, restaurants, and hotels across England, Wales, and Scotland, including 1,769 retail pubs, restaurants, and hotels, and 1,155 tenanted, leased, and franchised pubs. Greene King plc was founded in 1799 and is headquartered in Bury St Edmunds, the United Kingdom.

Cannae Company Profile

Cannae Holdings, Inc. is a diversified holding company. The Company has investments in a variety of industries including Restaurants, Technology Enabled Healthcare Services, Financial Services and more. The Company holds majority and minority equity investment stakes in a number of entities, including Ceridian Holdings, LLC, American Blue Ribbon Holdings, and LLC and T-System Holding LLC.

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