Analyzing Relx Plc (RELX) and FactSet Research Systems (FDS)
Relx Plc (NYSE: RELX) and FactSet Research Systems (NYSE:FDS) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.
This is a breakdown of current recommendations for Relx Plc and FactSet Research Systems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|FactSet Research Systems||1||6||2||0||2.11|
FactSet Research Systems has a consensus price target of $180.22, indicating a potential downside of 7.68%. Given FactSet Research Systems’ higher probable upside, analysts clearly believe FactSet Research Systems is more favorable than Relx Plc.
This table compares Relx Plc and FactSet Research Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|FactSet Research Systems||21.15%||55.76%||23.74%|
Valuation & Earnings
This table compares Relx Plc and FactSet Research Systems’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Relx Plc||$9.91 billion||2.49||$1.57 billion||N/A||N/A|
|FactSet Research Systems||$1.22 billion||6.25||$258.25 million||$6.52||29.94|
Relx Plc has higher revenue and earnings than FactSet Research Systems.
Risk and Volatility
Relx Plc has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, FactSet Research Systems has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.
Relx Plc pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. FactSet Research Systems pays an annual dividend of $2.24 per share and has a dividend yield of 1.1%. FactSet Research Systems pays out 34.4% of its earnings in the form of a dividend. Relx Plc has increased its dividend for 11 consecutive years. Relx Plc is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
2.3% of Relx Plc shares are held by institutional investors. Comparatively, 94.3% of FactSet Research Systems shares are held by institutional investors. 2.8% of FactSet Research Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
FactSet Research Systems beats Relx Plc on 8 of the 15 factors compared between the two stocks.
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.
FactSet Research Systems Company Profile
Factset Research Systems Inc. is engaged in providing integrated financial information and big data analytical applications for the global investment community. The Company’s segments include the U.S., Europe and Asia Pacific. The U.S. segment services finance professionals, including financial institutions throughout the Americas. The European segment maintains offices in France, Germany, Italy, Ireland, Latvia, Luxembourg, the Netherlands, Spain, South Africa, Sweden and Dubai. The Asia Pacific segment maintains office locations in Australia, Hong Kong, Singapore and Mumbai, India. The Company delivers insight and information to investment professionals through its analytics, service, content, and technology. Its offerings include a complete services solution focused on verifying, cleaning and loading portfolio data across asset classes, and an execution management system. The Company offers third-party content through desktop, wireless and off-platform solutions.
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