Head to Head Contrast: DST Systems (DST) & OpenTable (OPEN)

OpenTable (NASDAQ: OPEN) and DST Systems (NYSE:DST) are both it services & consulting – nec companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for OpenTable and DST Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OpenTable 0 0 0 0 N/A
DST Systems 0 1 2 0 2.67

DST Systems has a consensus price target of $68.33, indicating a potential upside of 7.07%.

Institutional and Insider Ownership

85.7% of DST Systems shares are held by institutional investors. 1.8% of DST Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

DST Systems pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. OpenTable does not pay a dividend. DST Systems pays out 10.6% of its earnings in the form of a dividend. DST Systems has increased its dividend for 2 consecutive years.

Profitability

This table compares OpenTable and DST Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OpenTable N/A N/A N/A
DST Systems 21.26% 16.20% 6.60%

Earnings and Valuation

This table compares OpenTable and DST Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OpenTable N/A N/A N/A $0.94 N/A
DST Systems $1.56 billion 2.47 $427.30 million $6.78 9.42

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

Summary

DST Systems beats OpenTable on 10 of the 11 factors compared between the two stocks.

About OpenTable

OpenTable, Inc. (OpenTable) provides solution that forms an online network connecting reservation-taking restaurants and people who dine at those restaurants. Its solutions include its electronic reservation book (ERB) and and OpenTable Connect (Connect). Its solutions for diners include www.opentable.com, its restaurant reservation Website, as well as a range of mobile applications. The OpenTable network includes approximately 20,000 OpenTable restaurant customers spanning all 50 states, as well as select markets outside of the United States. In June 2013, OpenTable Inc acquired JustChalo Inc. In July 2013, the Company announced that it has acquired Rezbook, Urbanspoon’s reservation management system for restaurants. In December 2013, OpenTable acquired Quickcue, LLC, a provider of guest management systems for restaurants. In February 2014, OpenTable Inc acquired Ness Computing Inc.

About DST Systems

DST Systems, Inc. (DST) is a provider of technology-based information processing and servicing solutions. The Company offers its solutions through data management, business processing and customer communications solutions to clients within the asset management, brokerage, retirement and healthcare markets. The Company operates through two segments: Financial Services and Healthcare Services. Through the Financial Services segment, DST provides investor, investment, advisor/intermediary and asset distribution services to companies within the financial services industry. The Healthcare Services segment uses the Company’s software applications to provide healthcare organizations a range of medical and pharmacy benefit solutions to aid their information processing, quality of care, cost management and payment integrity needs. Its investments in equity securities, private equity investments, real estate and certain financial interests are aggregated into an Investments and Other segment.

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