IHS (NYSE: IHS) and TheStreet (NASDAQ:TST) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitabiliy.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for IHS and TheStreet, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IHS 0 2 1 0 2.33
TheStreet 0 0 2 0 3.00

IHS currently has a consensus target price of $44.67, indicating a potential downside of 61.90%. TheStreet has a consensus target price of $2.05, indicating a potential upside of 130.34%. Given TheStreet’s stronger consensus rating and higher probable upside, analysts clearly believe TheStreet is more favorable than IHS.

Valuation & Earnings

This table compares IHS and TheStreet’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
IHS N/A N/A N/A $3.58 32.75
TheStreet $62.71 million 0.51 -$1.55 million ($0.42) -2.12

IHS has higher revenue, but lower earnings than TheStreet. TheStreet is trading at a lower price-to-earnings ratio than IHS, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares IHS and TheStreet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IHS 7.63% 8.19% 2.73%
TheStreet -24.24% -4.43% -2.45%

Risk & Volatility

IHS has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, TheStreet has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Institutional and Insider Ownership

49.9% of TheStreet shares are held by institutional investors. 9.7% of TheStreet shares are held by company 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.

Summary

TheStreet beats IHS on 6 of the 11 factors compared between the two stocks.

IHS Company Profile

IHS Inc. develops source of information, insight and analytics in different areas of business. The Company’s segments include Resources, Transportation and Consolidated Markets & Solutions. The Company’s Resources segment includes its Energy and Chemicals product offerings. Its Transportation segment includes its Automotive; Maritime & Trade, and Aerospace, Defense & Security product offerings. Its Consolidated Markets & Solutions segment includes its Product Design; Technology, Media & Telecom, and Economics & Country Risk product offerings. It provides authoritative analysis and forecasts of sales and production for light vehicles, medium and heavy commercial vehicles, powertrain, components and technology systems across various markets. Its product design offerings include content and analysis on various engineering and technical standards, codes, reference books, journals, and other scientific and technical documents, as well as software-based engineering decision engines.

TheStreet Company Profile

TheStreet, Inc. (TheStreet) is a digital financial media company focused on the financial, and mergers and acquisitions environment. The Company’s collection of digital services provides users, subscribers and advertisers with a range of content and tools through a range of online, social media, tablet and mobile channels. With a suite of digital services, TheStreet offers the tools and insights needed to make informed decisions about earning, investing, saving and spending money. TheStreet provides interactive multimedia coverage of the financial markets, economy, industry trends, investment and financial planning. Its subscription products are designed to address the needs of investors with various areas of interest, including fledgling investors, day and swing traders, and fundamental, technical and options traders. Its RateWatch business publishes bank rate market information on a subscription basis to financial institutions and government agencies.

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