John Wiley & Sons (JW.A) versus Equifax (EFX) Financial Analysis
John Wiley & Sons (NYSE: JW.A) and Equifax (NYSE:EFX) are both mid-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
Insider & Institutional Ownership
73.6% of John Wiley & Sons shares are owned by institutional investors. Comparatively, 90.0% of Equifax shares are owned by institutional investors. 1.0% of John Wiley & Sons shares are owned by company insiders. Comparatively, 1.3% of Equifax shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares John Wiley & Sons and Equifax’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|John Wiley & Sons||5.32%||17.78%||6.34%|
This is a summary of recent recommendations for John Wiley & Sons and Equifax, 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|
John Wiley & Sons presently has a consensus price target of $53.00, suggesting a potential upside of Infinity. Equifax has a consensus price target of $142.79, suggesting a potential upside of 53.57%. Given John Wiley & Sons’ higher probable upside, equities analysts plainly believe John Wiley & Sons is more favorable than Equifax.
Earnings and Valuation
This table compares John Wiley & Sons and Equifax’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|John Wiley & Sons||N/A||N/A||N/A||$1.59||N/A|
|Equifax||$3.29 billion||3.40||$1.22 billion||$4.72||19.70|
Equifax has higher revenue and earnings than John Wiley & Sons. John Wiley & Sons is trading at a lower price-to-earnings ratio than Equifax, indicating that it is currently the more affordable of the two stocks.
John Wiley & Sons pays an annual dividend of $1.28 per share. Equifax pays an annual dividend of $1.56 per share and has a dividend yield of 1.7%. John Wiley & Sons pays out 80.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equifax pays out 33.1% of its earnings in the form of a dividend. Equifax has increased its dividend for 5 consecutive years. Equifax is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
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, Equifax has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.
Equifax beats John Wiley & Sons on 13 of the 15 factors compared between the two stocks.
About John Wiley & Sons
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.
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.
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