Aaron’s (AAN) versus Exterran (EXTN) Critical Survey

Aaron’s (NYSE: AAN) and Exterran (NYSE:EXTN) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Institutional and Insider Ownership

90.4% of Exterran shares are owned by institutional investors. 2.3% of Aaron’s shares are owned by company insiders. Comparatively, 2.2% of Exterran shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Aaron’s and Exterran’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aaron’s $3.38 billion 0.93 $292.53 million $2.56 17.63
Exterran $1.22 billion 0.88 $33.88 million ($0.39) -76.67

Aaron’s has higher revenue and earnings than Exterran. Exterran is trading at a lower price-to-earnings ratio than Aaron’s, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Aaron’s has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500. Comparatively, Exterran has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Aaron’s and Exterran’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aaron’s 8.65% 11.64% 7.06%
Exterran 2.65% 0.26% 0.10%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Aaron’s and Exterran, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aaron’s 1 3 7 1 2.67
Exterran 0 0 0 0 N/A

Aaron’s currently has a consensus target price of $46.50, indicating a potential upside of 3.04%. Given Aaron’s’ higher possible upside, research analysts plainly believe Aaron’s is more favorable than Exterran.

Dividends

Aaron’s pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. Exterran does not pay a dividend. Aaron’s pays out 4.7% of its earnings in the form of a dividend. Aaron’s has raised its dividend for 11 consecutive years.

Summary

Aaron’s beats Exterran on 14 of the 17 factors compared between the two stocks.

Aaron’s Company Profile

Aaron's, Inc. operates as an omnichannel provider of lease-purchase solutions. It operates through three segments: Progressive Leasing, Aaron's Business, and DAMI. The company engages in the sale, lease ownership, and specialty retailing of furniture, consumer electronics, home appliances, and accessories. As of February 15, 2018, it operated approximately 1,726 company-operated and franchised stores in 47 states and Canada, as well as its e-commerce platform, Aarons.com. Aaron's, Inc. was founded in 1955 and is headquartered in Atlanta, Georgia.

Exterran Company Profile

Exterran Corporation engages in the compression, production, and processing of products and services for the oil and natural gas industry worldwide. The company operates through three segments: contract Operations, Aftermarket Services, and Product Sales. Its contract operation services include personnel, equipment, tools, materials, and supplies. The company also sells parts and components; and provides operation, maintenance, overhaul, upgrade, commissioning, and reconfiguration services, as well as integrated infrastructure solutions. In addition, it designs, engineers, manufactures, sells, and installs a range of oil and natural gas production and processing equipment, such as line heaters, oil and natural gas separators, glycol dehydration units, condensate stabilizers, dew point control plants, water treatment, mechanical refrigeration, and cryogenic plants and skid-mounted production packages for onshore and offshore production facilities; and custom-engineered and built-to-specification production and processing equipment, as well as skid-mounted natural gas compression equipment and pre-engineered compressor units. Exterran Corporation was founded in 2007 and is headquartered in Houston, Texas.

Receive News & Ratings for Aaron's Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Aaron's and related companies with MarketBeat.com's FREE daily email newsletter.




Leave a Reply