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The service sector is an important area for an industrialized economy. 911 listed companies are classifiable to the sector, which has a total market capitalization of $38.5 trillion. The sector is characterized by low margins especially within the retail and wholesale business. In contrast, the highest margins are realized by publishing firms, railroad stocks and research and business services.

In an effort to find some stocks from this sector to recommend, I screened mid-cap stocks (more than $2 billion market caps) with a dividend yield of more than 3 percent, as well as a 'buy' or better recommendation from brokerage firms. The recommendation scheme was created by Finviz.com and has a point scale of 1 to 5, with 1 a strong buy rating and 2 a buy. As a result, 10 services stocks have a buy rating and one have a strong buy recommendation. Two stocks are high yields. Here are the results sorted by dividend yield:

1. Teekay LNG Partners (NYSE:TGP) has a market capitalization of $2.08 billion. The company employs 1,037 people, generates revenues of $374.01 million and has a net income of $92.94 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $268.31 million. Because of these figures, the EBITDA margin is 71.74 percent (operating margin 47.85 percent and the net profit margin finally 24.85 percent).

The total debt represents 64.01 percent of the company’s assets and the total debt in relation to the equity amounts to 253.37 percent. Due to the financial situation, a return on equity of 8.75 percent was realized. Twelve trailing months earnings per share reached a value of $2.26. Last fiscal year, the company paid $2.40 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 15.46, Price/Sales 6.06 and Price/Book ratio 2.15. Dividend Yield: 7.21 percent. The beta ratio is 0.43. The company’s analyst rating is 2.3.

2. R.R. Donnelley & Sons (NASDAQ:RRD) has a market capitalization of $2.77 billion. The company employs 58,700 people, generates revenues of $10,018.90 million and has a net income of $217.10 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,079.40 million. Because of these figures, the EBITDA margin is 10.77 percent (operating margin 5.54 percent and the net profit margin finally 2.17 percent).

The total debt represents 38.86 percent of the company’s assets and the total debt in relation to the equity amounts to 158.70 percent. Due to the financial situation, a return on equity of 10.17 percent was realized. Twelve trailing months earnings per share reached a value of $1.18. Last fiscal year, the company paid $1.04 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 12.50, Price/Sales 0.28 and Price/Book ratio 1.37. Dividend Yield: 7.06 percent. The beta ratio is 1.95. The company’s analyst rating is 2.2.

3. H&R Block (NYSE:HRB) has a market capitalization of $4.79 billion. The company employs 7,900 people, generates revenues of $3,774.30 million and has a net income of $419.40 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $787.27 million. Because of these figures, the EBITDA margin is 20.86 percent (operating margin 17.63 percent and the net profit margin finally 11.11 percent).

The total debt represents 20.70 percent of the company’s assets and the total debt in relation to the equity amounts to 74.38 percent. Due to the financial situation, a return on equity of 28.95 percent was realized. Twelve trailing months earnings per share reached a value of $1.33. Last fiscal year, the company paid $0.60 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 12.29, Price/Sales 1.27 and Price/Book ratio 3.45. Dividend Yield: 4.89 percent. The beta ratio is 0.65. The company’s analyst rating is 2.2.

4. Cinemark Holdings (NYSE:CNK) has a market capitalization of $2.17 billion. The company employs 6,122 people, generates revenues of $2,141.14 million and has a net income of $149.66 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $436.37 million. Because of these figures, the EBITDA margin is 20.38 percent (operating margin 13.68 percent and the net profit margin finally 6.99 percent).

The total debt represents 48.89 percent of the company’s assets and the total debt in relation to the equity amounts to 163.73 percent. Due to the financial situation, a return on equity of 15.06 percent was realized. Twelve trailing months earnings per share reached a value of $1.31. Last fiscal year, the company paid $0.75 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 14.42, Price/Sales 1.01 and Price/Book ratio 2.11. Dividend Yield: 4.43 percent. The beta ratio is 1.20. The company’s analyst rating is 2.0.

5. Delhaize Group (NYSE:DEG) has a market capitalization of $6.00 billion. The company employs 61,617 people, generates revenues of $26,485.61 million and has a net income of $731.69 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,031.20 million. Because of these figures, the EBITDA margin is 7.67 percent (operating margin 4.91 percent and the net profit margin finally 2.76 percent).

The total debt represents 25.34 percent of the company’s assets and the total debt in relation to the equity amounts to 54.52 percent. Due to the financial situation, a return on equity of 12.16 percent was realized. Twelve trailing months earnings per share reached a value of $7.13. Last fiscal year, the company paid $2.18 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 8.36, Price/Sales 0.23 and Price/Book ratio 0.93. Dividend Yield: 4.20 percent. The beta ratio is 0.78. The company’s analyst rating is 1.0.

6. Darden Restaurants (NYSE:DRI) has a market capitalization of $5.72 billion. The company employs 180,000 people, generates revenues of $7,500.20 million and has a net income of $478.70 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,057.60 million. Because of these figures, the EBITDA margin is 14.10 percent (operating margin 8.63 percent and the net profit margin finally 6.38 percent).

The total debt represents 30.16 percent of the company’s assets and the total debt in relation to the equity amounts to 85.16 percent. Due to the financial situation, a return on equity of 25.00 percent was realized. Twelve trailing months earnings per share reached a value of $3.26. Last fiscal year, the company paid $1.28 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 13.66, Price/Sales 0.76 and Price/Book ratio 3.10. Dividend Yield: 3.86 percent. The beta ratio is 0.87. The company’s analyst rating is 2.1.

7. TAM S.A. (NYSE:TAM) has a market capitalization of $3.14 billion. The company employs 28,193 people, generates revenues of $6,312.73 million and has a net income of $371.11 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $930.25 million. Because of these figures, the EBITDA margin is 14.74 percent (operating margin 8.91 percent and the net profit margin finally 5.88 percent).

The total debt represents 50.90 percent of the company’s assets and the total debt in relation to the equity amounts to 303.85 percent. Due to the financial situation, a return on equity of 34.34 percent was realized. Twelve trailing months earnings per share reached a value of $-1.14. Last fiscal year, the company paid $0.55 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is not calculable, Price/Sales 0.48 and Price/Book ratio 2.33. Dividend Yield: 3.64 percent. The beta ratio is 1.81. The company’s analyst rating is 2.5.

8. Watsco (NYSE:WSO) has a market capitalization of $2.26 billion. The company employs 4,000 people, generates revenues of $2,844.60 million and has a net income of $111.72 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $176.34 million. Because of these figures, the EBITDA margin is 6.20 percent (operating margin 5.82 percent and the net profit margin finally 3.93 percent).

The total debt represents 0.82 percent of the company’s assets and the total debt in relation to the equity amounts to 1.32 percent. Due to the financial situation, a return on equity of 10.11 percent was realized. Twelve trailing months earnings per share reached a value of $2.66. Last fiscal year, the company paid $2.04 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 25.72, Price/Sales 0.79 and Price/Book ratio 2.91. Dividend Yield: 3.62 percent. The beta ratio is 0.93. The company’s analyst rating is 2.0.

9. Sims Metal Management (SMS) has a market capitalization of $2.83 billion. The company employs 6,248 people, generates revenues of $9,126.42 million and has a net income of $198.04 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $417.31 million. Because of these figures, the EBITDA margin is 4.57 percent (operating margin 3.13 percent and the net profit margin finally 2.17 percent).

The total debt represents 6.98 percent of the company’s assets and the total debt in relation to the equity amounts to 9.99 percent. Due to the financial situation, a return on equity of 6.20 percent was realized. Twelve trailing months earnings per share reached a value of $0.96. Last fiscal year, the company paid $0.48 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 14.35, Price/Sales 0.31 and Price/Book ratio 0.94. Dividend Yield: 3.53 percent. The beta ratio is 1.80. The company’s analyst rating is 2.5.

10. Pearson (NYSE:PSO) has a market capitalization of $15.46 billion. The company employs 36,317 people, generates revenues of $8,674.54 million and has a net income of $802.66 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,413.84 million. Because of these figures, the EBITDA margin is 16.30 percent (operating margin 13.12 percent and the net profit margin finally 9.25 percent).

The total debt represents 21.67 percent of the company’s assets and the total debt in relation to the equity amounts to 41.75 percent. Due to the financial situation, a return on equity of 10.71 percent was realized. Twelve trailing months earnings per share reached a value of $1.00. Last fiscal year, the company paid $0.59 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 19.00, Price/Sales 1.79 and Price/Book ratio 1.79. Dividend Yield: 3.38 percent. The beta ratio is 0.78. The company’s analyst rating is 2.3.

11. American Eagle Outfitters (NYSE:AEO) has a market capitalization of $2.53 billion. The company employs 6,900 people, generates revenues of $2,967.56 million and has a net income of $181.93 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $456.51 million. Because of these figures, the EBITDA margin is 15.38 percent (operating margin 10.65 percent and the net profit margin finally 6.13 percent).

The total debt represents 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 12.42 percent was realized. Twelve trailing months earnings per share reached a value of $0.95. Last fiscal year, the company paid $0.43 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 13.71, Price/Sales 0.85 and Price/Book ratio 1.88. Dividend Yield: 3.36 percent. The beta ratio is 1.01. The company’s analyst rating is 2.5.

Source: 11 High Yielding Service Sector Mid Caps With 'Buy' Ratings