Heritage Global (OTCMKTS:HGBL) and J2 Global (NASDAQ:JCOM) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Risk & Volatility
Heritage Global has a beta of -0.28, suggesting that its stock price is 128% less volatile than the S&P 500. Comparatively, J2 Global has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.
Valuation & Earnings
This table compares Heritage Global and J2 Global’s top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
J2 Global has higher revenue and earnings than Heritage Global.
This is a breakdown of recent recommendations for Heritage Global and J2 Global, as reported by MarketBeat.
||Strong Buy Ratings
J2 Global has a consensus target price of $93.25, indicating a potential upside of 25.56%. Given J2 Global’s higher probable upside, analysts clearly believe J2 Global is more favorable than Heritage Global.
J2 Global pays an annual dividend of $1.70 per share and has a dividend yield of 2.3%. Heritage Global does not pay a dividend. J2 Global pays out 31.4% of its earnings in the form of a dividend. J2 Global has raised its dividend for 7 consecutive years.
Institutional & Insider Ownership
99.9% of J2 Global shares are owned by institutional investors. 26.4% of Heritage Global shares are owned by company insiders. Comparatively, 5.2% of J2 Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Heritage Global and J2 Global’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
J2 Global beats Heritage Global on 10 of the 15 factors compared between the two stocks.
Heritage Global Company Profile
Heritage Global Inc., through its subsidiaries, engages in the asset liquidation business. It provides auction, appraisal, and asset advisory services; mergers and acquisitions advisory services for financially distressed businesses and properties; and accounts receivable brokerage services, as well as purchases and sells industrial machinery and equipment, real estate, inventories, accounts receivable, and distressed debts. The company also arranges traditional asset disposition services, such as commissions from online and Webcast auctions, liquidations, and negotiated sales; and offers equity method investment services, as well as monetization solutions. It serves oil and gas, mining, drilling, solar, construction, and rental equipment sectors. Heritage Global Inc. was formerly known as Counsel RB Capital Inc. and changed its name to Heritage Global Inc. in August 2013. The company was founded in 1983 and is headquartered in San Diego, California. Heritage Global Inc. is a subsidiary of Counsel Communications LLC.
J2 Global Company Profile
j2 Global, Inc., together with its subsidiaries, engages in the provision of Internet services worldwide. It operates through two segments, Cloud Services and Digital Media. The Cloud Services segment offers cloud services to sole proprietors, small to medium-sized businesses and enterprises, and government organizations. This segment provides online fax services under the eFax, sFax, MyFax, eFax Plus, eFax Pro, eFax Secure, eFax Corporate, and eFax Developer names; on-demand voice and unified communications services under the eVoice and Onebox names; online backup and disaster recovery solutions under the KeepItSafe, LiveDrive, LiveVault, and SugarSync names; email security, encryption, archival, and perimeter protection solutions services under the FuseMail name; email marketing services under the Campaigner name; and customer relationship management solutions and customer support services. The Digital Media segment operates a portfolio of Web properties, including IGN.com, Mashable.com, PCMag.com, HumbleBundle.com, Speedtest.net, AskMen.com, MedPageToday.com, Offers.com, and Everydayhealth.com that offer technology products, gaming and lifestyle products and services, news and commentary related products, speed testing for Internet and network connections, and online deals and discounts for consumers, as well as professional networking tools, targeted emails, and white papers for IT professionals. This segment also sells display and video advertising solutions, as well as targets advertising across the Internet; sells business-to-business leads for IT vendors; promotes deals and discounts on its Web properties for consumers; and licenses the right to use PCMag's Editors' Choice logo and other copyrighted editorial content to businesses. The company was formerly known as j2 Global Communications, Inc. and changed its name to j2 Global, Inc. in December 2011. j2 Global, Inc. was founded in 1995 and is headquartered in Los Angeles, California.
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