Comparing Bankrate (NYSE:RATE) & IHS Markit (INFO)
Bankrate (NYSE: RATE) and IHS Markit (NASDAQ:INFO) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitabiliy and risk.
Valuation & Earnings
This table compares Bankrate and IHS Markit’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Bankrate||$459.34 million||2.67||$95.97 million||($0.46)||-30.11|
|IHS Markit||$3.35 billion||5.45||$973.60 million||$0.52||87.79|
IHS Markit has higher revenue and earnings than Bankrate. Bankrate is trading at a lower price-to-earnings ratio than IHS Markit, indicating that it is currently the more affordable of the two stocks.
This table compares Bankrate and IHS Markit’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for Bankrate and IHS Markit, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bankrate currently has a consensus price target of $12.71, indicating a potential downside of 8.20%. IHS Markit has a consensus price target of $43.83, indicating a potential downside of 3.98%. Given IHS Markit’s higher possible upside, analysts clearly believe IHS Markit is more favorable than Bankrate.
Institutional and Insider Ownership
49.2% of Bankrate shares are owned by institutional investors. Comparatively, 97.9% of IHS Markit shares are owned by institutional investors. 6.3% of Bankrate shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Bankrate has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, IHS Markit has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.
IHS Markit beats Bankrate on 10 of the 14 factors compared between the two stocks.
Bankrate Company Profile
Bankrate, Inc. is a publisher, aggregator and distributor of personal finance content on the Internet. The Company provides consumers personal finance editorial content across multiple vertical categories, including mortgages, deposits, credit cards, senior care and other personal finance categories. The Company’s segments include Banking, Credit Cards, Senior Care and Other. The Company provides a range of digital display advertising formats. The Company is also engaged in the sale of print advertisements and the distribution (or syndication) of its editorial content. The Company offers branded content that educates consumers and financial professionals on a range of personal finance topics. The Company provides a platform for consumers searching for competitive rates on mortgages, deposits and money market accounts.
IHS Markit Company Profile
IHS Markit Ltd., formerly Markit Ltd., is a provider of critical information and analytics for the major industries, financial markets and governments. The Company operates through four segments: Resources, Transportation, Consolidated Markets & Solutions (CMS) and Financial Services. The Resources segment includes its energy and chemicals product offerings. Its energy offerings are focused on upstream, midstream, downstream and power/gas/coal/renewables (PGCR) services. The Transportation segment includes its aerospace, defense and security (AD&S); automotive, and maritime and trade (M&T) product offerings. The CMS segment includes its product design; technology, media and telecommunication, and economics and country risk (ECR) product offerings. The Company’s Financial Services segment provides pricing and reference data, indices, valuation and trading services, trade processing, enterprise software and managed services.
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