Service Co. International (NYSE: SCI) and Carriage Services (NYSE:CSV) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Service Co. International pays an annual dividend of $0.68 per share and has a dividend yield of 1.8%. Carriage Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.1%. Service Co. International pays out 43.9% of its earnings in the form of a dividend. Carriage Services pays out 21.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Service Co. International has raised its dividend for 6 consecutive years and Carriage Services has raised its dividend for 2 consecutive years. Service Co. International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Service Co. International and Carriage Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Service Co. International||17.66%||23.68%||2.38%|
Valuation & Earnings
This table compares Service Co. International and Carriage Services’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Service Co. International||$3.10 billion||2.31||$546.66 million||$1.55||24.91|
|Carriage Services||$258.14 million||1.78||$37.19 million||$1.39||20.47|
Service Co. International has higher revenue and earnings than Carriage Services. Carriage Services is trading at a lower price-to-earnings ratio than Service Co. International, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Service Co. International and Carriage Services, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Service Co. International||1||0||4||0||2.60|
Service Co. International currently has a consensus target price of $44.50, indicating a potential upside of 15.26%. Carriage Services has a consensus target price of $57.00, indicating a potential upside of 100.35%. Given Carriage Services’ higher possible upside, analysts clearly believe Carriage Services is more favorable than Service Co. International.
Volatility and Risk
Service Co. International has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Carriage Services has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.
Institutional and Insider Ownership
87.0% of Service Co. International shares are owned by institutional investors. Comparatively, 86.8% of Carriage Services shares are owned by institutional investors. 6.2% of Service Co. International shares are owned by company insiders. Comparatively, 13.6% of Carriage Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Service Co. International beats Carriage Services on 13 of the 17 factors compared between the two stocks.
Service Co. International Company Profile
Service Corporation International provides deathcare products and services in the United States and Canada. The company operates through Funeral and Cemetery segments. Its funeral service and cemetery operations comprise funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other businesses. The company also provides professional services relating to funerals and cremations, including the use of funeral facilities and motor vehicles; arranging and directing services; and removal, preparation, embalming, cremation, memorialization, and travel protection, as well as catering services. In addition, it offers funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, on-line and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise. Further, the company's cemeteries provide cemetery property interment rights, including developed lots, lawn crypts, mausoleum spaces, niches, and other cremation memorialization and interment options; and sells cemetery merchandise and services, including memorial markers and bases, outer burial containers, flowers and floral placements, graveside services, merchandise installations, and interments, as well as offers preneed cemetery merchandise and services. Service Corporation International offers its products and services under the Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, Funeraria del Angel, Making Everlasting Memories, Neptune Society, and Trident Society brands. As of December 31, 2017, it owned and operated 1,488 funeral service locations; and 473 cemeteries, including 281 funeral service/cemetery combination locations covering 45 states, 8 Canadian provinces, the District of Columbia, and Puerto Rico. The company was founded in 1962 and is headquartered in Houston, Texas.
Carriage Services Company Profile
Carriage Services, Inc. provides funeral and cemetery services, and merchandise in the United States. It operates through two segments, Funeral Home Operations and Cemetery Operations. The Funeral Home Operations segment offers burial, cremation, and consultation services; removes and prepares remains; sells caskets, urns, and related funeral merchandise; and enables the use of funeral home facilities for visitation, remembrance, and transportation services. The Cemetery Operations segment provides products and services, such as interment services; the rights to interment in cemetery sites comprising grave sites, mausoleum crypts, and niches; and related cemetery merchandise, including memorials and vaults. As of December 31, 2017, the company operated 178 funeral homes in 29 states; and 32 cemeteries in 11 states. Carriage Services, Inc. was founded in 1991 and is headquartered in Houston, Texas.
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