Contrasting StoneMor Partners (STON) & UniFirst (NYSE:UNF)

StoneMor Partners (NYSE: STON) and UniFirst (NYSE:UNF) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Volatility & Risk

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StoneMor Partners has a beta of 0.02, meaning that its stock price is 98% less volatile than the S&P 500. Comparatively, UniFirst has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Institutional & Insider Ownership

41.6% of StoneMor Partners shares are held by institutional investors. Comparatively, 74.0% of UniFirst shares are held by institutional investors. 9.8% of StoneMor Partners shares are held by insiders. Comparatively, 1.0% of UniFirst shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares StoneMor Partners and UniFirst’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
StoneMor Partners $326.23 million 0.71 -$32.49 million N/A N/A
UniFirst $1.59 billion 2.10 $70.19 million $5.28 31.16

UniFirst has higher revenue and earnings than StoneMor Partners.

Dividends

StoneMor Partners pays an annual dividend of $0.33 per share and has a dividend yield of 5.4%. UniFirst pays an annual dividend of $0.15 per share and has a dividend yield of 0.1%. UniFirst pays out 2.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and price targets for StoneMor Partners and UniFirst, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StoneMor Partners 0 4 0 0 2.00
UniFirst 0 2 1 0 2.33

StoneMor Partners currently has a consensus target price of $7.00, suggesting a potential upside of 14.38%. UniFirst has a consensus target price of $183.00, suggesting a potential upside of 11.21%. Given StoneMor Partners’ higher possible upside, equities research analysts plainly believe StoneMor Partners is more favorable than UniFirst.

Profitability

This table compares StoneMor Partners and UniFirst’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
StoneMor Partners -10.42% -22.16% -1.98%
UniFirst 6.79% 7.95% 6.42%

Summary

UniFirst beats StoneMor Partners on 10 of the 14 factors compared between the two stocks.

StoneMor Partners Company Profile

StoneMor Partners L.P., together with its subsidiaries, owns and operates cemeteries and funeral homes in the United States. It operates through two segments, Cemetery Operations and Funeral Home Operations. The company's cemetery products and services include interment rights, such as burial lots, lawn crypts, mausoleum crypts, cremation niches, and perpetual care rights; merchandise comprising burial vaults, caskets, grave markers and grave marker bases, and memorials; and installation services for burial vaults, caskets, and other cemetery merchandise, as well as other service items. It also provides receptacles for cremated remains that include urns, and the inurnment of cremated remains in niches or scattering gardens; and funeral home services, such as family consultation, the removal and preparation of remains, and the use of funeral home facilities for visitation and prayer services. As of September 15, 2017, the company owned and operated 316 cemeteries in 27 states and Puerto Rico; and 98 funeral homes in 18 states and Puerto Rico. StoneMor GP LLC serves as the general partner of StoneMor Partners L.P. The company was founded in 1999 and is headquartered in Trevose, Pennsylvania.

UniFirst Company Profile

UniFirst Corporation is a provider of workplace uniforms and protective work wear clothing in the United States. The Company designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, aprons and specialized protective wear, such as flame resistant and high visibility garments. It operates in six segments: the US Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing (MFG), Specialty Garments Rental and Cleaning (Specialty Garments), First Aid and Corporate. The Company also rents and sells industrial wiping products, floor mats, facility service products and other non-garment items, and provides restroom and cleaning supplies and first aid cabinet services, and other safety supplies. It also decontaminates and cleans work clothes, which has been exposed to radioactive materials and service special cleanroom protective wear and facilities.

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