Contrasting XBP Europe (NASDAQ:XBP) & Heritage Global (NASDAQ:HGBL)

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XBP Europe	-9.50%	N/A	-14.57%
Heritage Global	20.60%	16.05%	11.90%

Earnings & Valuation

This table compares XBP Europe and Heritage Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XBP Europe	$157.15 million	0.23	-$11.05 million	N/A	N/A
Heritage Global	$49.88 million	1.54	$12.48 million	$0.28	7.36

Heritage Global has lower revenue, but higher earnings than XBP Europe.

Institutional and Insider Ownership

15.7% of XBP Europe shares are owned by institutional investors. Comparatively, 33.5% of Heritage Global shares are owned by institutional investors. 82.5% of XBP Europe shares are owned by insiders. Comparatively, 12.8% of Heritage Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

XBP Europe has a beta of -0.25, suggesting that its share price is 125% less volatile than the S&P 500. Comparatively, Heritage Global has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Summary

Heritage Global beats XBP Europe on 7 of the 9 factors compared between the two stocks.

About XBP Europe

XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.

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.