Relx (NYSE: RENX) and Equifax (NYSE:EFX) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Insider and Institutional Ownership
1.2% of Relx shares are held by institutional investors. Comparatively, 95.2% of Equifax shares are held by institutional investors. 1.3% of Equifax shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Relx has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Equifax has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
Earnings and Valuation
This table compares Relx and Equifax’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Relx||$9.31 billion||2.37||$1.57 billion||N/A||N/A|
|Equifax||$3.14 billion||4.64||$488.80 million||$4.42||27.52|
Relx has higher revenue and earnings than Equifax.
This table compares Relx and Equifax’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Relx and Equifax, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Equifax has a consensus target price of $128.93, suggesting a potential upside of 6.00%. Given Equifax’s higher probable upside, analysts clearly believe Equifax is more favorable than Relx.
Relx pays an annual dividend of $0.42 per share and has a dividend yield of 1.8%. Equifax pays an annual dividend of $1.56 per share and has a dividend yield of 1.3%. Equifax pays out 35.3% of its earnings in the form of a dividend. Relx has increased its dividend for 2 consecutive years and Equifax has increased its dividend for 5 consecutive years.
Equifax beats Relx on 10 of the 14 factors compared between the two stocks.
RELX NV is a holding company, which holds interests in RELX Group plc. RELX Group is a global provider of information and analytics for professional and business customers across industries. The Company operates in four segments: Scientific, Technical & Medical; Risk & Business Analytics; Legal, and Exhibitions. The Company’s Scientific, Technical & Medical segment provides information and analytics that help institutions and professionals progress science and advance healthcare. The Risk & Business Analytics segment provides solutions and decision tools that combine public and industry-specific content with technology and analytics. The Legal segment is a provider of information and analytics to professionals in legal, corporate, government and non-profit organizations. Its Exhibitions segment consists of Reed Exhibitions, which is an exhibitions business, with events in over 30 countries.
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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