TransUnion (NYSE: TRU) and IHS (NYSE:IHS) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Risk and Volatility

TransUnion has a beta of 0.6, suggesting that its share price is 40% 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 TransUnion and IHS’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TransUnion $1.80 billion 4.80 $636.70 million $1.16 40.95
IHS N/A N/A N/A $3.58 32.75

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

Profitability

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

Net Margins Return on Equity Return on Assets
TransUnion 12.08% 20.32% 6.22%
IHS 7.63% 8.19% 2.73%

Analyst Recommendations

This is a summary of recent recommendations and price targets for TransUnion and IHS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransUnion 0 1 7 0 2.88
IHS 0 2 1 0 2.33

TransUnion currently has a consensus price target of $47.13, suggesting a potential downside of 0.79%. IHS has a consensus price target of $44.67, suggesting a potential downside of 61.90%. Given TransUnion’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TransUnion is more favorable than IHS.

Summary

TransUnion beats IHS on 7 of the 9 factors compared between the two stocks.

About TransUnion

TransUnion is a risk and information solutions provider to businesses and consumers. The Company provides consumer reports, risk scores, analytical services and decision capabilities to businesses. The Company operates through three segments: U.S. Information Services (USIS), International and Consumer Interactive. The USIS segment provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. The International segment provides services similar to its USIS segment to businesses in select regions outside the United States. The Consumer Interactive segment offers solutions that help consumers manage their personal finances and take precautions against identity theft. Businesses uses its solutions for their process workflows to assess consumer ability to pay for services, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud.

About IHS

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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