Burford Capital (NYSE:BUR – Get Free Report) and Loomis (OTCMKTS:LOIMF – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Analyst Recommendations
This is a summary of current ratings for Burford Capital and Loomis, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Burford Capital | 1 | 3 | 2 | 0 | 2.17 |
| Loomis | 0 | 1 | 0 | 0 | 2.00 |
Burford Capital currently has a consensus target price of $8.88, suggesting a potential upside of 161.27%. Given Burford Capital’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Burford Capital is more favorable than Loomis.
Valuation and Earnings
This table compares Burford Capital and Loomis”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Burford Capital | -$1.63 billion | -0.46 | $62.57 million | ($7.71) | -0.44 |
| Loomis | $3.11 billion | 1.02 | $161.68 million | $2.96 | 16.05 |
Loomis has higher revenue and earnings than Burford Capital. Burford Capital is trading at a lower price-to-earnings ratio than Loomis, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Burford Capital and Loomis’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Burford Capital | N/A | 10.24% | 4.35% |
| Loomis | 6.06% | 15.08% | 4.90% |
Volatility and Risk
Burford Capital has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Loomis has a beta of -0.86, indicating that its stock price is 186% less volatile than the S&P 500.
Summary
Loomis beats Burford Capital on 8 of the 12 factors compared between the two stocks.
About Burford Capital
Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. Burford Capital Limited was incorporated in 2009 and is based in Saint Peter Port, Guernsey.
About Loomis
Loomis AB (publ) provides solutions for the distribution, payments, handling, storage, and recycling of cash and other valuables. The company offers a range of solutions for cash in transit, cash management services, foreign exchange services, automated teller machines, automated solutions, and international valuables logistics, as well as operates Loomis Pay, a payment service that enables processing of various types of payment methods, such as card, cash, and digital alternatives. It serves financial institutions, banks, retailers, commercial enterprises, and other customers, as well as public sector in Sweden, the United States, France, Switzerland, Spain, the United Kingdom, and internationally. Loomis AB (publ) was founded in 1852 and is headquartered in Stockholm, Sweden.
Receive News & Ratings for Burford Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Burford Capital and related companies with MarketBeat.com's FREE daily email newsletter.
