MSCI (NYSE: MSCI) and Dun & Bradstreet Corporation (The) (NYSE:DNB) are both mid-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitabiliy, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Earnings and Valuation

This table compares MSCI and Dun & Bradstreet Corporation (The)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MSCI $1.17 billion 8.15 $587.00 million $2.90 36.34
Dun & Bradstreet Corporation (The) $1.71 billion 2.28 $435.90 million $2.23 47.36

MSCI has higher revenue, but lower earnings than Dun & Bradstreet Corporation (The). MSCI is trading at a lower price-to-earnings ratio than Dun & Bradstreet Corporation (The), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MSCI and Dun & Bradstreet Corporation (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MSCI 23.31% 72.33% 9.99%
Dun & Bradstreet Corporation (The) 4.85% -25.59% 12.10%

Dividends

MSCI pays an annual dividend of $1.12 per share and has a dividend yield of 1.1%. Dun & Bradstreet Corporation (The) pays an annual dividend of $2.01 per share and has a dividend yield of 1.9%. MSCI pays out 38.6% of its earnings in the form of a dividend. Dun & Bradstreet Corporation (The) pays out 90.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MSCI has raised its dividend for 10 consecutive years and Dun & Bradstreet Corporation (The) has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations for MSCI and Dun & Bradstreet Corporation (The), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MSCI 1 1 2 0 2.25
Dun & Bradstreet Corporation (The) 1 2 0 0 1.67

MSCI presently has a consensus target price of $91.75, suggesting a potential downside of 12.94%. Dun & Bradstreet Corporation (The) has a consensus target price of $112.50, suggesting a potential upside of 6.51%. Given Dun & Bradstreet Corporation (The)’s higher possible upside, analysts plainly believe Dun & Bradstreet Corporation (The) is more favorable than MSCI.

Insider & Institutional Ownership

98.8% of MSCI shares are owned by institutional investors. Comparatively, 92.8% of Dun & Bradstreet Corporation (The) shares are owned by institutional investors. 2.3% of MSCI shares are owned by insiders. Comparatively, 0.4% of Dun & Bradstreet Corporation (The) shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

MSCI has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Dun & Bradstreet Corporation (The) has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Summary

MSCI beats Dun & Bradstreet Corporation (The) on 12 of the 17 factors compared between the two stocks.

About MSCI

MSCI Inc. offers products and services to support the needs of institutional investors throughout their investment processes. Its segments include Index, Analytics and All Other segment. All Other segment comprises environmental, social and governance (ESG) and Real Estate segments. Its indexes are used in various areas of the investment process, including index-linked product creation and performance benchmarking, as well as portfolio construction and rebalancing, and asset allocation. The Analytics segment uses analytical content to create products and services, which offer institutional investors an integrated view of risk and return. MSCI’s ESG products include MSCI ESG Ratings, MSCI ESG Business Involvement Screening Research and MSCI ESG Governance Metrics. MSCI’s Real Estate products comprise private real estate benchmarks and indexes branded IPD Group Limited (IPD) and include Portfolio Analysis Service (PAS), IPD Rental Information Service (IRIS) and IPD Global Intel.

About Dun & Bradstreet Corporation (The)

The Dun & Bradstreet Corporation is the source of commercial data, analytics and insight on businesses. The Company operates through two segments: Americas, which consists of its operations in the United States and Canada, and Non-Americas, which consists of its operations in the United Kingdom, Greater China, India, and its European and Asia Pacific Worldwide Networks. The Company provides Risk Management Solutions and Sales and Marketing Solutions. The Company provides DNBi and D&B Credit that are subscription-based online applications, which offers customers real time access to its complete and up-to-date global information, monitoring and portfolio analysis. The Company provides D&B Optimizer solution, which transforms its customers’ prospects and data into up-to-date, actionable commercial insight, facilitating a single customer view across multiple systems and touch points, such as marketing and billing databases, and enables a customer to make sales and marketing decisions.

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