Comparing Heritage Global (HGBL) and Its Competitors

Heritage Global (NASDAQ:HGBL) is one of 341 public companies in the “Financial Services” industry, but how does it compare to its rivals? We will compare Heritage Global to related companies based on the strength of its risk, earnings, profitability, institutional ownership, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Heritage Global and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heritage Global	1	0	1	0	2.00
Heritage Global Competitors	1983	6927	11685	444	2.50

Heritage Global presently has a consensus target price of $3.00, indicating a potential upside of 138.10%. As a group, “Financial Services” companies have a potential downside of 6.45%. Given Heritage Global’s higher possible upside, research analysts plainly believe Heritage Global is more favorable than its rivals.

Volatility & Risk

Heritage Global has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Heritage Global’s rivals have a beta of 2.51, indicating that their average stock price is 151% more volatile than the S&P 500.

Institutional & Insider Ownership

33.5% of Heritage Global shares are owned by institutional investors. Comparatively, 43.0% of shares of all “Financial Services” companies are owned by institutional investors. 15.6% of Heritage Global shares are owned by company insiders. Comparatively, 21.9% of shares of all “Financial Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Heritage Global and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Heritage Global	$50.98 million	$3.59 million	-3.07
Heritage Global Competitors	$11.46 billion	$1.09 billion	7.63

Heritage Global’s rivals have higher revenue and earnings than Heritage Global. Heritage Global is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Heritage Global and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heritage Global	-29.63%	6.12%	4.69%
Heritage Global Competitors	-412.58%	-39.71%	-5.80%

Summary

Heritage Global rivals beat Heritage Global on 9 of the 13 factors compared.

About Heritage Global

Heritage Global Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions. The company operates in three segments: Auction and Liquidation, Refurbishment & Resale, and Brokerage. It provides a suite of market making, acquisitions, refurbishment, dispositions, valuations, and secured lending services. The company focuses on identifying, valuing, acquiring, and monetizing underlying tangible assets. It acts as an adviser, as well as a principal, acquiring, or brokering manufacturing facilities; surplus industrial machinery and equipment; industrial inventories; and charged-off receivable portfolios. The company was formerly known as Counsel RB Capital Inc. and changed its name to Heritage Global, Inc. in August 2013. Heritage Global, Inc. was founded in 1937 and is headquartered in San Diego, California.