Collectors Universe (CLCT) and Sothebys (BID) Financial Review

Collectors Universe (NYSE: BID) and Sothebys (NYSE:BID) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Dividends

Collectors Universe pays an annual dividend of $0.70 per share and has a dividend yield of 5.1%. Sothebys does not pay a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Collectors Universe and Sothebys, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Collectors Universe 0 0 0 0 N/A
Sothebys 0 1 3 0 2.75

Sothebys has a consensus price target of $62.50, indicating a potential upside of 30.92%. Given Sothebys’ higher probable upside, analysts clearly believe Sothebys is more favorable than Collectors Universe.

Risk & Volatility

Collectors Universe has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Sothebys has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Earnings and Valuation

This table compares Collectors Universe and Sothebys’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Collectors Universe $70.16 million 1.76 $8.50 million N/A N/A
Sothebys $989.39 million 2.49 $118.79 million $2.25 21.22

Sothebys has higher revenue and earnings than Collectors Universe.

Profitability

This table compares Collectors Universe and Sothebys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Collectors Universe 9.11% 41.38% 20.32%
Sothebys 10.11% 20.32% 4.53%

Insider and Institutional Ownership

46.3% of Collectors Universe shares are owned by institutional investors. Comparatively, 87.9% of Sothebys shares are owned by institutional investors. 14.0% of Collectors Universe shares are owned by insiders. Comparatively, 13.9% of Sothebys shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Sothebys beats Collectors Universe on 9 of the 13 factors compared between the two stocks.

About Collectors Universe

Collectors Universe Inc. provides authentication and grading services to dealers and collectors of coins, trading cards, event tickets, autographs and historical and sports memorabilia. The company operates through three segments: Coins; Trading Cards and Autographs; and Other High-End Collectibles. It offers independent coin authentication and grading services under the Professional Coin Grading Service brand; independent sports and trading cards authentication and grading service under the Professional Sports Authenticator brand; and independent authentication and grading service for vintage autographs and memorabilia under the PSA/DNA Authentication brand. The company also operates certified coin exchange, a subscription-based business-to-business Internet bid-ask market Website, certifiedcoinexchange.com that includes approximately 100,000 bid and ask prices for certified coins; and collectors corner, a business-to-consumer Website, collectorscorner.com, which consists of approximately 110,000 collectibles for sale. In addition, it publishes magazines that provide market prices and information for certain collectibles and high-value assets, which are accessible on its Websites; and authoritative price guides, rarity reports, and other collectibles data to provide collectors with information. Further, the company sells advertising and click-through commissions on its Collectors.com Website, as well as in the magazines; and manages and operates collectibles trade shows and conventions. Collectors Universe Inc. was founded in 1986 and is based in Santa Ana, California.

About Sothebys

Sotheby's operates as an auctioneer of authenticated fine art, decorative art, jewelry, wine, and collectibles in the United States, the United Kingdom, Hong Kong, China, Switzerland, France, and internationally. The company operates in two segments, Agency and Finance. The Agency segment accepts property on consignment; and matches sellers to buyers through the auction or private sale process. It is also involved in the sale of artworks; and operation of an auction house for investment-quality automobiles. The Finance segment offers art-related financing services, such as term loans secured by artworks that are not intended for sale. The company is also involved in the retail wine operations; licensing Sotheby's International Realty and related trademarks; and licensing its Sotheby's brand name for use in connection with the art auction business in Australia, and art education services in the United States and the United Kingdom. Sotheby's was founded in 1744 and is headquartered in New York, New York.

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