John Wiley & Sons (NYSE: JW.A) and IHS (NYSE:IHS) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Valuation & Earnings

This table compares John Wiley & Sons and IHS’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
John Wiley & Sons N/A N/A N/A $1.96 N/A
IHS N/A N/A N/A $3.58 32.75

John Wiley & Sons is trading at a lower price-to-earnings ratio than IHS, indicating that it is currently the more affordable of the two stocks.

Dividends

John Wiley & Sons pays an annual dividend of $1.28 per share. IHS does not pay a dividend. John Wiley & Sons pays out 65.3% of its earnings in the form of a dividend.

Risk and Volatility

John Wiley & Sons has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, IHS has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Institutional and Insider Ownership

74.6% of John Wiley & Sons shares are owned by institutional investors. 7.5% of John Wiley & Sons 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.

Profitability

This table compares John Wiley & Sons and IHS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
John Wiley & Sons 6.61% 17.39% 6.17%
IHS 7.63% 8.19% 2.73%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for John Wiley & Sons and IHS, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
John Wiley & Sons 0 1 1 0 2.50
IHS 0 2 1 0 2.33

John Wiley & Sons presently has a consensus target price of $54.00, suggesting a potential upside of Infinity. IHS has a consensus target price of $44.67, suggesting a potential downside of 61.90%. Given John Wiley & Sons’ stronger consensus rating and higher probable upside, equities research analysts clearly believe John Wiley & Sons is more favorable than IHS.

Summary

John Wiley & Sons beats IHS on 7 of the 10 factors compared between the two stocks.

John Wiley & Sons Company Profile

John Wiley & Sons, Inc. provides knowledge and knowledge-enabled services in the areas of research, professional practice and education. The Company operates through three segments: Research, Professional Development and Education. Through the Research segment, the Company provides digital and print scientific, technical, medical and scholarly journals, reference works, books, database services and advertising. The Professional Development segment provides digital and print books, corporate learning solutions, employment talent solutions and training services, and test prep and certification. In the Education segment, the Company provides print and digital content, and education solutions, including online program management services for higher education institutions and course management tools for instructors and students. The Company is engaged in developing and cross-marketing products to its customer base of researchers, professionals, students and educators.

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.

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