StoneMor Partners L.P. (NYSE: STON) and Regis Corporation (NYSE:RGS) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their profitabiliy, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.
This table compares StoneMor Partners L.P. and Regis Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|StoneMor Partners L.P.||-11.53%||-19.73%||-2.02%|
Insider & Institutional Ownership
24.5% of StoneMor Partners L.P. shares are owned by institutional investors. Comparatively, 96.4% of Regis Corporation shares are owned by institutional investors. 9.8% of StoneMor Partners L.P. shares are owned by company insiders. Comparatively, 24.0% of Regis Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares StoneMor Partners L.P. and Regis Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|StoneMor Partners L.P.||$316.56 million||1.02||$4.14 million||($1.03)||-8.86|
|Regis Corporation||$1.72 billion||0.28||$71.85 million||($0.26)||-39.81|
Regis Corporation has higher revenue and earnings than StoneMor Partners L.P.. Regis Corporation is trading at a lower price-to-earnings ratio than StoneMor Partners L.P., indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
StoneMor Partners L.P. has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Regis Corporation has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
This is a summary of current recommendations for StoneMor Partners L.P. and Regis Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|StoneMor Partners L.P.||0||3||1||0||2.25|
StoneMor Partners L.P. currently has a consensus price target of $12.00, suggesting a potential upside of 31.43%. Given StoneMor Partners L.P.’s higher probable upside, research analysts clearly believe StoneMor Partners L.P. is more favorable than Regis Corporation.
StoneMor Partners L.P. pays an annual dividend of $1.32 per share and has a dividend yield of 14.5%. Regis Corporation does not pay a dividend. StoneMor Partners L.P. pays out -128.2% of its earnings in the form of a dividend.
Regis Corporation beats StoneMor Partners L.P. on 9 of the 14 factors compared between the two stocks.
About StoneMor Partners L.P.
StoneMor Partners L.P. owns and operates cemeteries and funeral homes. The Company operates through two segments: Cemetery Operations and Funeral Homes. Its Cemetery Operations segment sells interment rights, caskets, burial vaults, cremation niches, markers and other cemetery related merchandise. Its Funeral Homes segment offers a range of services, including family consultation, final expense insurance products, the removal and preparation of remains, provision of caskets and related funeral merchandise, the use of funeral home facilities for visitation, worship and performance of funeral services, and transportation services. It sells cemetery products and services both at the time of death, which it refers to as at-need, and prior to the time of death, which it refers to as pre-need. It operates approximately 310 cemeteries in over 30 states and Puerto Rico, and approximately 100 funeral homes in over 20 states and Puerto Rico.
About Regis Corporation
Regis Corporation owns, franchises and operates beauty salons. The Company operates through three segments: North American Value, North American Premium and International. As of June 30, 2016, the Company’s North American Value salon operations consisted of 5,784 Company-owned salons and 2,496 franchised salons operating in the United States, Canada and Puerto Rico. As of June 30, 2016, the Company’s North American Premium salon operations consisted of 680 Company-owned salons operating in the United States, Canada, and Puerto Rico. As of June 30, 2016, the Company’s International operations consisted of 328 Company-owned salons in the United Kingdom. The services supplied by its salons include haircutting and styling, hair coloring and other services. As of June 30, 2016, it owned, franchised or held ownership interests in 9,483 locations around the world. The Company’s salons operate primarily under the trade names of SmartStyle, Supercuts, MasterCuts, Regis Salons and Cost Cutters.
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