Head-To-Head Review: Wolters Kluwer (OTCMKTS:WTKWY) versus SGS (OTCMKTS:SGSOY)

Wolters Kluwer (OTCMKTS:WTKWY) and SGS (OTCMKTS:SGSOY) are both large-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares Wolters Kluwer and SGS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wolters Kluwer	N/A	N/A	N/A
SGS	N/A	N/A	N/A

Insider & Institutional Ownership

0.0% of Wolters Kluwer shares are held by institutional investors. 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.

Risk and Volatility

Wolters Kluwer has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, SGS has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Wolters Kluwer and SGS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wolters Kluwer	0	1	3	0	2.75
SGS	1	3	1	3	2.75

Valuation and Earnings

This table compares Wolters Kluwer and SGS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wolters Kluwer	$6.93 billion	2.49	$1.48 billion	N/A	N/A
SGS	$8.38 billion	2.62	$806.28 million	N/A	N/A

Wolters Kluwer has higher earnings, but lower revenue than SGS.

Dividends

Wolters Kluwer pays an annual dividend of $2.39 per share and has a dividend yield of 3.2%. SGS pays an annual dividend of $0.19 per share and has a dividend yield of 1.7%.

About Wolters Kluwer

Wolters Kluwer N.V. provides professional information, software solutions, and services in the Netherlands, rest of Europe, the United States, Canada, the Asia Pacific, and internationally. The company operates through Health; Tax & Accounting; Financial & Corporate Compliance; Legal & Regulatory; and Corporate Performance & ESG segments. The Health segment offers clinical technology and evidence-based solutions that drive effective decision-making and improved outcomes across healthcare. It serves hospitals, healthcare organizations, clinicians, students, schools, libraries, payers, life sciences, and pharmacies. The Tax & Accounting segment offers solutions that help tax, accounting, and audit professionals to drive productivity, navigate change, and deliver better outcomes. It serves accounting firms, tax and auditing departments, businesses of all sizes, government agencies, libraries, and universities. The Financial & Corporate Compliance segment offers solutions for legal entity compliance and banking product compliance. It serves corporations, small businesses, law firms, banks, non-bank lenders, credit unions, insurers, and securities firms. The Legal & Regulatory segment provides information, insights, and workflow solutions for changing regulatory obligations, managing risk, and increasing efficiency. It provides solutions for legal and compliance professionals in law firms, corporate legal departments, universities, and government organizations. The Corporate Performance & ESG segment offers enterprise software to drive financial and sustainability performance and manage risks, meet reporting requirements, improve safety and productivity, and reduce environmental impact. It serves corporate finance, audit, planning, risk, environmental, health and safety, operational risk management, and sustainability professionals in corporations, banks, and governments. Wolters Kluwer N.V. was founded in 1836 and is based in Alphen aan den Rijn, the Netherlands.

About SGS

SGS SA provides inspection, testing, and verification services in Europe, Africa, the Middle East, the Americas, and the Asia Pacific. It operates in five segments: Connectivity & Products, Health & Nutrition, Industries & Environment, Natural Resources, and Business Assurance. The company provides laboratory testing, product inspection and consulting, process assessment, technical and transactional assistance; and automotive, connectivity, softlines and accessories, and hardgoods, toys, and juvenile products, as well as government and trade facilitation services. In addition, it offers a range of testing, inspection and certification solutions for the crop science, food, health science, and cosmetics and hygiene industries; field services, technical assessment, and advisory services; and services related to industrial, public health and safety, environmental testing, and public mandates. Further, it provides assessment, auditing, and certification, supply chain assurance, training, consulting, and sustainability assurance services; agricultural commodities, geochemistry, laboratory testing petroleum and chemicals, metallurgy and consulting, mineral and metal commodities, and oil, gas, and chemical commodities; and sustainability solutions. The company serves the agriculture and food, chemical, construction, consumer and retail, energy, industrial manufacturing, life sciences, mining, oil and gas, public, and transportation sectors. SGS SA was founded in 1878 and is headquartered in Geneva, Switzerland.