Alliance Data Systems (NYSE: ADS) and Odyssey Marine Exploration (NASDAQ:OMEX) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Risk & Volatility
Alliance Data Systems has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, Odyssey Marine Exploration has a beta of 2.79, suggesting that its stock price is 179% more volatile than the S&P 500.
Earnings and Valuation
This table compares Alliance Data Systems and Odyssey Marine Exploration’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alliance Data Systems||$7.72 billion||1.65||$788.70 million||$15.29||15.06|
|Odyssey Marine Exploration||$4.68 million||7.62||-$6.31 million||($1.10)||-3.86|
Alliance Data Systems has higher revenue and earnings than Odyssey Marine Exploration. Odyssey Marine Exploration is trading at a lower price-to-earnings ratio than Alliance Data Systems, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Alliance Data Systems and Odyssey Marine Exploration, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alliance Data Systems||2||8||11||0||2.43|
|Odyssey Marine Exploration||0||0||0||0||N/A|
Alliance Data Systems currently has a consensus target price of $274.61, indicating a potential upside of 19.23%. Given Alliance Data Systems’ higher probable upside, equities analysts clearly believe Alliance Data Systems is more favorable than Odyssey Marine Exploration.
Alliance Data Systems pays an annual dividend of $2.28 per share and has a dividend yield of 1.0%. Odyssey Marine Exploration does not pay a dividend. Alliance Data Systems pays out 14.9% of its earnings in the form of a dividend.
Institutional & Insider Ownership
94.6% of Alliance Data Systems shares are owned by institutional investors. Comparatively, 8.2% of Odyssey Marine Exploration shares are owned by institutional investors. 2.6% of Alliance Data Systems shares are owned by company insiders. Comparatively, 8.2% of Odyssey Marine Exploration shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Alliance Data Systems and Odyssey Marine Exploration’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alliance Data Systems||10.22%||66.17%||3.79%|
|Odyssey Marine Exploration||N/A||N/A||-224.48%|
Alliance Data Systems beats Odyssey Marine Exploration on 11 of the 15 factors compared between the two stocks.
About Alliance Data Systems
Alliance Data Systems Corporation is a provider of data-driven marketing and loyalty solutions serving consumer-based businesses in a range of industries. The Company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs. The Company operates through three segments: LoyaltyOne, which provides coalition and short-term loyalty programs through the Company’s Canadian AIR MILES Reward Program and BrandLoyalty Group B.V. (BrandLoyalty); Epsilon, which provides end-to-end, integrated direct marketing solutions, and Card Services, which provides risk management solutions, account origination, funding, transaction processing, customer care, collections and marketing services for the Company’s private label and co-brand retail credit card programs.
About Odyssey Marine Exploration
Odyssey Marine Exploration, Inc. (Odyssey) is a deep-ocean exploration company. The Company’s techniques are applied to mineral exploration, shipwreck cargo recovery, and other marine survey and exploration charter services. The Company is engaged in discovering shipwreck sites in the deep ocean and conducting archaeological excavations with remotely operated vehicles (ROVs). Its shipwreck discoveries include the SS Republic, HMS Victory, Black Swan, La Marquise de Tourny and other unidentified shipwrecks. The Company offers exploration services, including geophysical and geotechnical assessments of seabed mineral deposits to companies, including its subsidiaries and companies, in which it holds an equity position, as a resource development partner. The Company evaluates or explores various types of seabed mineral deposits, such as phosphorites, polymetallic nodules and seafloor massive sulfides. Odyssey offers its marine exploration services to third-party companies.
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