Analyzing OFX Group (OTCMKTS:OZFRY) and Heritage Global (NASDAQ:HGBL)

Heritage Global (NASDAQ:HGBL) and OFX Group (OTCMKTS:OZFRY) are both financial services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Heritage Global and OFX Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heritage Global	0	0	0	0	N/A
OFX Group	0	0	0	0	N/A

Insider & Institutional Ownership

33.5% of Heritage Global shares are owned by institutional investors. Comparatively, 0.4% of OFX Group shares are owned by institutional investors. 12.8% of Heritage Global shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Heritage Global and OFX Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heritage Global	$55.02 million	1.14	$12.48 million	$0.30	5.60
OFX Group	N/A	N/A	N/A	$0.34	21.46

Heritage Global has higher revenue and earnings than OFX Group. Heritage Global is trading at a lower price-to-earnings ratio than OFX Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Heritage Global and OFX Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heritage Global	20.29%	19.14%	13.81%
OFX Group	N/A	N/A	N/A

Summary

Heritage Global beats OFX Group on 6 of the 8 factors compared between the two stocks.

About Heritage Global

Heritage Global Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions. The company operates in three segments: Auction and Liquidation, Refurbishment & Resale, and Brokerage. It provides a suite of market making, acquisitions, refurbishment, dispositions, valuations, and secured lending services. The company focuses on identifying, valuing, acquiring, and monetizing underlying tangible assets. It acts as an adviser, as well as a principal, acquiring, or brokering manufacturing facilities; surplus industrial machinery and equipment; industrial inventories; and charged-off receivable portfolios. The company was formerly known as Counsel RB Capital Inc. and changed its name to Heritage Global, Inc. in August 2013. Heritage Global, Inc. was founded in 1937 and is headquartered in San Diego, California.

About OFX Group

OFX Group Limited provides international payments and foreign exchange services worldwide. It offers range of products and services to consumers, corporates, online sellers, and enterprise clients. The company was formerly known as OzForex Group Limited and changed its name to OFX Group Limited in September 2016. OFX Group Limited was founded in 1998 and is headquartered in Sydney, Australia.