Head-To-Head Contrast: Blackhawk Network (HAWK) versus America First Multifamily Investors (ATAX)

Blackhawk Network (NASDAQ:HAWK) and America First Multifamily Investors (NASDAQ:ATAX) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Blackhawk Network and America First Multifamily Investors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blackhawk Network 0 10 1 0 2.09
America First Multifamily Investors 0 1 0 0 2.00

Blackhawk Network currently has a consensus target price of $44.54, indicating a potential downside of 1.35%. Given Blackhawk Network’s stronger consensus rating and higher possible upside, equities analysts plainly believe Blackhawk Network is more favorable than America First Multifamily Investors.

Earnings and Valuation

This table compares Blackhawk Network and America First Multifamily Investors’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blackhawk Network $2.23 billion 1.16 -$155.76 million ($2.77) -16.30
America First Multifamily Investors $70.38 million 4.91 $30.59 million $0.44 13.00

America First Multifamily Investors has lower revenue, but higher earnings than Blackhawk Network. Blackhawk Network is trading at a lower price-to-earnings ratio than America First Multifamily Investors, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Blackhawk Network and America First Multifamily Investors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blackhawk Network -7.01% -21.14% -5.06%
America First Multifamily Investors 34.37% 9.35% 2.66%

Risk & Volatility

Blackhawk Network has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, America First Multifamily Investors has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.

Institutional and Insider Ownership

90.7% of Blackhawk Network shares are held by institutional investors. Comparatively, 7.0% of America First Multifamily Investors shares are held by institutional investors. 3.8% of Blackhawk Network shares are held by company insiders. Comparatively, 1.3% of America First Multifamily Investors shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

America First Multifamily Investors pays an annual dividend of $0.50 per share and has a dividend yield of 8.7%. Blackhawk Network does not pay a dividend. America First Multifamily Investors pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

About Blackhawk Network

Blackhawk Network Holdings, Inc. provides a range of prepaid gift, telecom, and debit cards in physical and electronic forms; and related prepaid products and payment services in the United States and internationally. It operates through three segments: U.S. Retail, International, and Incentives & Rewards. The company distributes closed loop gift cards in the areas of digital media and e-commerce, dining, electronics, entertainment, fashion, transportation, home improvement, and travel; non-reloadable open loop gift cards; and prepaid wireless or cellular cards that are used to load airtime onto the prepaid handsets, as well as sells handsets. It also offers general purpose reloadable (GPR) cards; and Reloadit, a GPR reload network product that allows consumers to reload funds onto their previously purchased third-party GPR cards. In addition, the company provides incentives solutions comprising solutions, which allow businesses to manage consumer incentive programs, including in-store, online, or mail-in rebate processing; a hosted software platform for managing sales person and sales channel incentive programs; bulk prepaid card ordering systems and Websites to allow business and incentive program clients to use prepaid cards as part of their incentive and reward programs; direct-to-participant fulfillment services for prepaid cards, checks, and merchandise; and employee engagement programs. Further, it offers Cardpool that provides an online marketplace and various retail locations to sell unused gift cards; digital services for online and mobile applications; and card production and processing services to its prepaid gift and telecom content providers. The company distributes its products through grocery, convenience, specialty, and online retailers. Blackhawk Network Holdings, Inc. was founded in 2001 and is headquartered in Pleasanton, California.

About America First Multifamily Investors

America First Multifamily Investors, L.P. acquires, holds, sells, and deals in a portfolio of mortgage revenue bonds (MRBs) that are issued to provide construction or permanent financing for multifamily and student housing, and residential and commercial properties. It operates through four segments: Mortgage Revenue Bond Investments, MF Properties, Public housing Capital Fund Trust, and Other Investments. As of December 31, 2017, the company owned 87 MRBs, of which various bonds were issued by state and local housing authorities in order to provide construction or permanent financing for 63 residential properties comprising a total of 10,666 rental units located in 14 states in the United States. America First Capital Associates Limited Partnership Two serves as the general partner of the company. America First Multifamily Investors, L.P. was founded in 1998 and is based in Omaha, Nebraska.

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