Critical Contrast: Checkpoint Systems (CKP) vs. Its Competitors

Checkpoint Systems (NYSE: CKP) is one of 95 public companies in the “Business Support Services” industry, but how does it contrast to its competitors? We will compare Checkpoint Systems to related companies based on the strength of its profitability, institutional ownership, analyst recommendations, earnings, valuation, dividends and risk.

Institutional and Insider Ownership

63.6% of shares of all “Business Support Services” companies are owned by institutional investors. 12.4% of shares of all “Business Support Services” companies are owned by 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 & Earnings

This table compares Checkpoint Systems and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Checkpoint Systems N/A N/A -7.68
Checkpoint Systems Competitors $1.24 billion $76.68 million 1,539.95

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

Risk & Volatility

Checkpoint Systems has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Checkpoint Systems’ competitors have a beta of 1.13, meaning that their average share price is 13% more volatile than the S&P 500.

Profitability

This table compares Checkpoint Systems and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Checkpoint Systems -27.26% -50.16% -20.24%
Checkpoint Systems Competitors -17.91% 10.68% 2.98%

Analyst Recommendations

This is a summary of recent ratings and target prices for Checkpoint Systems and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Checkpoint Systems 0 0 0 0 N/A
Checkpoint Systems Competitors 695 1931 2637 66 2.39

As a group, “Business Support Services” companies have a potential downside of 3.05%. Given Checkpoint Systems’ competitors higher possible upside, analysts plainly believe Checkpoint Systems has less favorable growth aspects than its competitors.

Summary

Checkpoint Systems competitors beat Checkpoint Systems on 8 of the 9 factors compared.

Checkpoint Systems Company Profile

Checkpoint Systems, Inc. is a United States-based supplier of merchandise availability solutions for the retail industry. The Company provides end-to-end solutions enabling retailers to achieve real-time inventory, accelerate the replenishment cycle, prevent out-of-stocks and reduce theft. It offers merchandise availability solutions, such as shrink management, including antennas, labels and tags, source tagging, deactivation, remote service and support, and Alpha High Theft Solutions, and merchandise visibility solutions, including inventory management, asset tracking and OneTag Program. OneTag Program allows retailers to obtain the benefits of inventory visibility and loss prevention with a single radio frequency identification tag. It offers apparel labelling solutions, such as Trim, including woven labels, printed fabric labels and specialty trim services, and brand merchandising, including printed items and self-adhesive. It serves markets, such as electronics and grocery.

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