Ennis (NYSE:EBF) versus RB Global (NYSE:RBA) Financial Analysis

Ennis (NYSE:EBF) and RB Global (NYSE:RBA) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Ennis and RB Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ennis	0	1	0	0	2.00
RB Global	0	3	6	1	2.80

RB Global has a consensus target price of $126.29, indicating a potential upside of 40.85%. Given RB Global’s stronger consensus rating and higher probable upside, analysts clearly believe RB Global is more favorable than Ennis.

Valuation & Earnings

This table compares Ennis and RB Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ennis	$392.40 million	1.38	$42.63 million	$1.53	13.95
RB Global	$4.85 billion	3.35	$423.10 million	$2.33	38.48

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

Volatility and Risk

Ennis has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, RB Global has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Dividends

Ennis pays an annual dividend of $1.05 per share and has a dividend yield of 4.9%. RB Global pays an annual dividend of $1.32 per share and has a dividend yield of 1.5%. Ennis pays out 68.6% of its earnings in the form of a dividend. RB Global pays out 56.7% 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. RB Global has raised its dividend for 20 consecutive years.

Institutional & Insider Ownership

74.3% of Ennis shares are held by institutional investors. Comparatively, 95.4% of RB Global shares are held by institutional investors. 3.2% of Ennis shares are held by company insiders. Comparatively, 0.6% of RB Global shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Ennis and RB Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ennis	9.81%	12.58%	10.82%
RB Global	9.99%	12.37%	5.58%

Summary

RB Global beats Ennis on 14 of the 18 factors compared between the two stocks.

About Ennis

Ennis, Inc. manufactures and sells business forms and other business products in the United States. The company offers snap sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated products, jumbo rolls, and pressure sensitive products under the Ennis, Royal Business Forms, Block Graphics, 360º Custom Labels, ColorWorx, Enfusion, Uncompromised Check Solutions, VersaSeal, Ad Concepts, FormSource Limited, Star Award Ribbon Company, Witt Printing, B&D Litho, Genforms, PrintGraphics, Calibrated Forms, PrintXcel, Printegra, Forms Manufacturers, Mutual Graphics, TRI-C Business Forms, Major Business Systems, Independent Printing, Hoosier Data Forms, Hayes Graphics, Wright Business Graphics, Wright 360, Integrated Print & Graphics, the Flesh Company, Impressions Direct, and AmeriPrint brands. It also provides point of purchase advertising under the Adams McClure brand name; presentation and document folders under the Admore, Folder Express, and Independent Folders brands; and custom printed, high-performance labels, and custom and stock tags under the Ennis Tag & Label brand name. In addition, the company offers custom and stock tags and labels under the Allen-Bailey Tag & Label, Atlas Tag & Label, Kay Toledo Tag, and Special Service Partners brands; custom and imprinted envelopes under the Trade Envelopes, Block Graphics, Wisco, and National Imprint Corporation brands; and financial and security documents under the Northstar and General Financial Supply brands; and custom and stock pressure seal documents under the Infoseal and PrintXcel brands. It distributes business products and forms through independent distributors, including business forms distributors, resellers, direct mail, commercial printers, payroll and accounts payable software companies, and advertising agencies. The company was formerly known as Ennis Business Forms, Inc. Ennis, Inc. was incorporated in 1909 and is headquartered in Midlothian, Texas.

About RB Global

RB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution. The company's brands include GovPlanet, an online marketplace for the sale of government and military assets; RB Auction, an onsite and online marketplace for selling and buying used equipment; IronPlanet, an online marketplace for selling and buying used equipment; Marketplace-E, an online solution that make offers/buy now format; Rouse Appraisals, a certified appraisal service solution; Ritchie List Mascus, an online equipment listing service and B2B dealer portal; CSAToday, an online reporting and analysis tool that gives sellers the ability to manage their vehicle assets and monitor sales performance; and Catastrophe Response Services. In addition, it offers title, data, transportation and logistics, refurbishing, inspection, and financial services. It serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.