Broadridge Financial Solutions (BR) and The Competition Critical Contrast
Broadridge Financial Solutions (NYSE: BR) is one of 27 publicly-traded companies in the “Professional Information Services” industry, but how does it compare to its competitors? We will compare Broadridge Financial Solutions to related companies based off the strength of its risk, earnings, valuation, profitability, dividends, analyst recommendations and institutional ownership.
This is a breakdown of recent ratings and price targets for Broadridge Financial Solutions and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Broadridge Financial Solutions||0||3||1||0||2.25|
|Broadridge Financial Solutions Competitors||138||611||708||13||2.41|
Broadridge Financial Solutions presently has a consensus target price of $76.00, suggesting a potential downside of 3.89%. All “Professional Information Services” companies have a potential downside of 0.67%. Given Broadridge Financial Solutions’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Broadridge Financial Solutions has less favorable growth aspects than its competitors.
Valuation & Earnings
This table compares Broadridge Financial Solutions and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Broadridge Financial Solutions||$4.14 billion||$704.70 million||28.97|
|Broadridge Financial Solutions Competitors||$3.19 billion||$932.06 million||16.25|
Broadridge Financial Solutions has higher revenue, but lower earnings than its competitors. Broadridge Financial Solutions is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently the more expensive than other companies in its industry.
This table compares Broadridge Financial Solutions and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Broadridge Financial Solutions||7.89%||37.99%||12.30%|
|Broadridge Financial Solutions Competitors||8.11%||28.26%||5.42%|
Volatility and Risk
Broadridge Financial Solutions has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Broadridge Financial Solutions’ competitors have a beta of 0.99, meaning that their average stock price is 1% less volatile than the S&P 500.
Institutional and Insider Ownership
84.3% of Broadridge Financial Solutions shares are owned by institutional investors. Comparatively, 58.7% of shares of all “Professional Information Services” companies are owned by institutional investors. 3.5% of Broadridge Financial Solutions shares are owned by insiders. Comparatively, 12.2% of shares of all “Professional Information Services” companies are owned by 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.
Broadridge Financial Solutions pays an annual dividend of $1.32 per share and has a dividend yield of 1.7%. Broadridge Financial Solutions pays out 48.4% of its earnings in the form of a dividend. As a group, “Professional Information Services” companies pay a dividend yield of 1.5% and pay out 29.2% of their earnings in the form of a dividend. Broadridge Financial Solutions has raised its dividend for 9 consecutive years.
Broadridge Financial Solutions competitors beat Broadridge Financial Solutions on 9 of the 15 factors compared.
About Broadridge Financial Solutions
Broadridge Financial Solutions, Inc. (Broadridge) is a provider of investor communications and technology-driven solutions to banks, broker-dealers, mutual funds and corporate issuers. The Company’s segments include Investor Communication Solutions, and Global Technology and Operations. The Company offers Bank/Broker-Dealer Investor Communication Solutions, Customer Communication Solutions, Corporate Issuer Solutions, Advisor Solutions and Mutual Fund and Retirement Solutions through Investor Communication Solutions segment. The Company offers a middle- and back-office securities processing platform for North American and global broker-dealers. Its services include investor and customer communications, securities processing, and data and analytics solutions. The Company delivers a range of solutions that helps its clients serve their retail and institutional customers across the entire investment lifecycle, including pre-trade, trade, and post-trade processing functionality.
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