Financial Analysis: Equifax (EFX) vs. IHS (IHS)
Equifax (NYSE: EFX) and IHS (NYSE:IHS) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitabiliy, earnings and risk.
Equifax pays an annual dividend of $1.56 per share and has a dividend yield of 1.1%. IHS does not pay a dividend. Equifax pays out 33.1% of its earnings in the form of a dividend. IHS has increased its dividend for 5 consecutive years.
Volatility & Risk
Equifax has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, IHS has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.
Earnings & Valuation
This table compares Equifax and IHS’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Equifax||$3.29 billion||5.32||$1.22 billion||$4.72||30.82|
Equifax has higher revenue and earnings than IHS. Equifax is trading at a lower price-to-earnings ratio than IHS, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Equifax and IHS, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Equifax presently has a consensus price target of $146.60, suggesting a potential upside of 0.78%. IHS has a consensus price target of $44.67, suggesting a potential downside of 61.90%. Given Equifax’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Equifax is more favorable than IHS.
This table compares Equifax and IHS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
89.6% of Equifax shares are owned by institutional investors. 1.3% of Equifax shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Equifax beats IHS on 11 of the 14 factors compared between the two stocks.
Equifax Inc. is a global provider of information solutions and human resources business process outsourcing services for businesses, governments and consumers. The Company operates in four segments: U.S. Information Solutions (USIS), International, Workforce Solutions and Global Consumer Solutions. Its products and services are based on databases of consumer and business information derived from various sources, including credit, financial assets, telecommunications and utility payments, employment, income, demographic and marketing data. It uses statistical techniques and software tools to analyze all available data, creating customized insights, decision-making solutions and processing services for its clients. It helps consumers understand, manage and protect their personal information and make more informed financial decisions. The Company also provides information, technology and services to support debt collections and recovery management.
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.
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