Analyzing Serco Group (SECCF) and The Competition

Serco Group (OTCMKTS:SECCF – Get Rating) is one of 197 publicly-traded companies in the “Business Services” industry, but how does it compare to its peers? We will compare Serco Group to similar companies based on the strength of its institutional ownership, profitability, dividends, analyst recommendations, valuation, earnings and risk.

Profitability

This table compares Serco Group and its peers’ net margins, return on equity and return on assets.

Valuation & Earnings

This table compares Serco Group and its peers gross revenue, earnings per share (EPS) and valuation.

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

Insider & Institutional Ownership

53.8% of Serco Group shares are owned by institutional investors. Comparatively, 55.7% of shares of all “Business Services” companies are owned by institutional investors. 14.9% of shares of all “Business Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Serco Group pays an annual dividend of $0.07 per share and has a dividend yield of 4.1%. Serco Group pays out 786.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Business Services” companies pay a dividend yield of 0.9% and pay out 493.9% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Serco Group and its peers, as provided by MarketBeat.

As a group, “Business Services” companies have a potential upside of 15.63%. Given Serco Group’s peers higher probable upside, analysts plainly believe Serco Group has less favorable growth aspects than its peers.

Summary

Serco Group peers beat Serco Group on 7 of the 13 factors compared.

Serco Group Company Profile

(Get Rating)

Serco Group Plc engages in the provision of business process outsourcing, consulting, and technology services. It offers advisory, design, and delivery expertise in the areas of operations strategy, transformation, program delivery, outsourcing, people performance and selection, and change management and research. It operates through the following segments: UK and Europe, Americas, AsPac, Middle East, and Corporate. The UK and Europe segment offers frontline services to defense, health, and justice and immigration sectors delivered to the country’s government and devolved authorities. The Americas segment delivers services to U.S. federal and civilian agencies, selected state and municipal governments, and the Canadian government. The AsPac segment caters Asia Pacific region including Australia, New Zealand, and Hong Kong. The Middle East segment serves the defense, transport, and healthcare sectors in the Middle East region. The Corporate segment includes central and head office costs. The company was founded in 1929 and is headquartered in Hook, the United Kingdom.

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