Match Group (NASDAQ:MTCH) and UniFirst (NYSE:UNF) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
Earnings & Valuation
This table compares Match Group and UniFirst’s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Match Group | $4.76 billion | 8.25 | $431.13 million | $4.53 | 32.59 |
UniFirst | $1.80 billion | 2.31 | $135.77 million | $7.13 | 31.03 |
Match Group has higher revenue and earnings than UniFirst. UniFirst is trading at a lower price-to-earnings ratio than Match Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Match Group and UniFirst, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Match Group | 0 | 6 | 12 | 0 | 2.67 |
UniFirst | 0 | 2 | 1 | 0 | 2.33 |
Match Group presently has a consensus target price of $124.58, indicating a potential downside of 15.61%. UniFirst has a consensus target price of $185.50, indicating a potential downside of 16.15%. Given Match Group’s stronger consensus rating and higher possible upside, analysts clearly believe Match Group is more favorable than UniFirst.
Profitability
This table compares Match Group and UniFirst’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Match Group | 2.43% | 32.15% | 6.21% |
UniFirst | 7.25% | 7.48% | 5.92% |
Insider & Institutional Ownership
94.7% of Match Group shares are held by institutional investors. Comparatively, 78.2% of UniFirst shares are held by institutional investors. 3.0% of Match Group shares are held by insiders. Comparatively, 1.1% of UniFirst shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Match Group has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, UniFirst has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Summary
Match Group beats UniFirst on 11 of the 14 factors compared between the two stocks.
About Match Group
Match Group, Inc. provides dating products worldwide. Its portfolio of brands include Tinder, Match, Meetic, OkCupid, Hinge, Pairs, PlentyOfFish, and OurTime, as well as a various other brands. The company is based in Dallas, Texas.
About UniFirst
UniFirst Corporation provides workplace uniforms and protective work wear clothing in the United States, Europe, and Canada. The company operates through U.S. and Canadian Rental and Cleaning, Manufacturing, Specialty Garments Rental and Cleaning, and First Aid segments. It designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, and aprons; and specialized protective wear, such as flame resistant and high visibility garments. The company also rents and sells industrial wiping products, floor mats, facility service products, and dry and wet mops; restroom and cleaning supplies comprising air fresheners, paper products, gloves, masks, sanitizers, and hand soaps; and other textile products. In addition, it provides first aid cabinet services and other safety supplies; decontaminates and cleans work clothes, and other items that is exposed to radioactive materials; and services special cleanroom protective wear and facilities. Further, it offers a range of garment service options, including full-service rental programs in which garments are cleaned and serviced; lease programs in which garments are cleaned and maintained by individual employees; and purchase programs to buy garments and related items directly. The company serves automobile service centers and dealers, delivery services, food and general merchandise retailers, food processors and service operations, light manufacturers, maintenance facilities, restaurants, service companies, soft and durable goods wholesalers, transportation companies, healthcare providers, government agencies, research and development laboratories, high technology companies, and utilities operating nuclear reactors, as well as others who require employee clothing for image, identification, protection, or utility purposes. UniFirst Corporation was founded in 1936 and is headquartered in Wilmington, Massachusetts.