TransUnion (NYSE: TRU) and Relx Plc (NYSE:RELX) are both mid-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares TransUnion and Relx Plc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TransUnion 12.08% 20.32% 6.22%
Relx Plc N/A N/A N/A

Dividends

Relx Plc pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. TransUnion does not pay a dividend.

Insider & Institutional Ownership

2.2% of Relx Plc shares are held by institutional investors. 2.1% of TransUnion shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for TransUnion and Relx Plc, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransUnion 0 1 7 0 2.88
Relx Plc 0 1 5 0 2.83

TransUnion presently has a consensus price target of $47.38, indicating a potential upside of 13.85%. Given TransUnion’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TransUnion is more favorable than Relx Plc.

Valuation & Earnings

This table compares TransUnion and Relx Plc’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TransUnion $1.80 billion 4.20 $636.70 million $1.16 35.87
Relx Plc $9.51 billion 4.76 $2.87 billion N/A N/A

Relx Plc has higher revenue and earnings than TransUnion.

Volatility & Risk

TransUnion has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Relx Plc has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Summary

TransUnion beats Relx Plc on 7 of the 13 factors compared between the two stocks.

TransUnion Company Profile

TransUnion is a risk and information solutions provider to businesses and consumers. The Company provides consumer reports, risk scores, analytical services and decision capabilities to businesses. The Company operates through three segments: U.S. Information Services (USIS), International and Consumer Interactive. The USIS segment provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. The International segment provides services similar to its USIS segment to businesses in select regions outside the United States. The Consumer Interactive segment offers solutions that help consumers manage their personal finances and take precautions against identity theft. Businesses uses its solutions for their process workflows to assess consumer ability to pay for services, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud.

Relx Plc Company Profile

RELX PLC 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.

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