Head-To-Head Survey: NCR Atleos (NYSE:NATL) versus Heritage Global (NASDAQ:HGBL)

Heritage Global (NASDAQ:HGBL) and NCR Atleos (NYSE:NATL) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares Heritage Global and NCR Atleos’ 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%
NCR Atleos	4.44%	83.41%	5.87%

Institutional and Insider Ownership

33.5% of Heritage Global shares are held by institutional investors. Comparatively, 88.7% of NCR Atleos shares are held by institutional investors. 15.6% of Heritage Global shares are held by insiders. Comparatively, 0.6% of NCR Atleos shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Heritage Global and NCR Atleos”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heritage Global	$50.98 million	0.94	$3.59 million	($0.41)	-3.37
NCR Atleos	$4.35 billion	0.78	$162.00 million	$2.58	17.87

NCR Atleos has higher revenue and earnings than Heritage Global. Heritage Global is trading at a lower price-to-earnings ratio than NCR Atleos, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Heritage Global has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, NCR Atleos has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Heritage Global and NCR Atleos, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heritage Global	1	0	1	0	2.00
NCR Atleos	0	4	1	0	2.20

Heritage Global currently has a consensus target price of $3.00, indicating a potential upside of 117.39%. NCR Atleos has a consensus target price of $50.27, indicating a potential upside of 9.04%. Given Heritage Global’s higher possible upside, analysts clearly believe Heritage Global is more favorable than NCR Atleos.

Summary

NCR Atleos beats Heritage Global on 10 of the 13 factors compared between the two stocks.

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.

About NCR Atleos

NCR Atleos Corporation operates as a financial technology company in the United States, rest of the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Self-Service Banking, Network, and Telecommunications & Technology (T&T). The Self-Service Banking segment offers solutions, including a line of automated teller machine (ATM) and interactive teller machine (ITM) hardware and software, as well as related installation, maintenance, and managed and professional services; and solutions to manage and run the ATM channel end-to-end for financial institutions comprising back office, cash management, software management and ATM deployment, and others. The Network segment provides a network of ATMs and multi-functioning financial services kiosks for financial institutions, fintechs, neobanks, and retailers; Allpoint network for credit unions, banks, digital banks, fintechs, stored-value debit card issuers, and other consumer financial services providers; ReadyCode to convert a digital value to cash or cash to a digital value; ATM branding solutions to financial institutions; ATM management and services to retailers and other businesses; and engages in the buying and selling of Bitcoins. The T&T segment offers managed network and infrastructure services to enterprise clients across various industries through communications service providers and technology manufacturers; and professional, field, and remote services for modern network technologies, including software-defined wide area networking, network functions virtualization, wireless local area networks, optical networking, and edge networks. NCR Atleos Corporation is headquartered in Atlanta, Georgia.