iShares NASDAQ Biotechnology Index (NASDAQ: IBB) and Cannae (NYSE:CNNE) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares iShares NASDAQ Biotechnology Index and Cannae’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iShares NASDAQ Biotechnology Index N/A N/A N/A N/A N/A
Cannae $1.34 billion 0.91 $650.00 million $1.62 10.59

Cannae has higher revenue and earnings than iShares NASDAQ Biotechnology Index.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for iShares NASDAQ Biotechnology Index and Cannae, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iShares NASDAQ Biotechnology Index 0 0 1 0 3.00
Cannae 0 0 0 0 N/A

Dividends

iShares NASDAQ Biotechnology Index pays an annual dividend of $0.72 per share and has a dividend yield of 0.7%. Cannae does not pay a dividend.

Profitability

This table compares iShares NASDAQ Biotechnology Index and Cannae’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iShares NASDAQ Biotechnology Index N/A N/A N/A
Cannae 7.05% 1.76% 0.86%

Insider and Institutional Ownership

25.0% of iShares NASDAQ Biotechnology Index shares are owned by institutional investors. Comparatively, 70.9% of Cannae shares are owned by institutional investors. 6.0% of Cannae shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

iShares NASDAQ Biotechnology Index has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Cannae has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Summary

Cannae beats iShares NASDAQ Biotechnology Index on 6 of the 9 factors compared between the two stocks.

iShares NASDAQ Biotechnology Index Company Profile

iShares Nasdaq Biotechnology ETF (the Fund), formerly iShares Nasdaq Biotechnology Index Fund, is an exchange-traded fund (ETF). The Fund seeks investment results that correspond generally to the price and yield performance of the NASDAQ Biotechnology Index (the Index). The Index contains securities of NASDAQ listed companies that are classified according to the Industry Classification Benchmark as either biotechnology or pharmaceuticals, which also meet other eligibility criteria determined by NASDAQ. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund’s investment advisor is BlackRock Fund Advisors, which is indirectly owned by BlackRock, Inc.

Cannae Company Profile

Cannae Holdings, Inc. is a diversified holding company. The Company has investments in a variety of industries including Restaurants, Technology Enabled Healthcare Services, Financial Services and more. The Company holds majority and minority equity investment stakes in a number of entities, including Ceridian Holdings, LLC, American Blue Ribbon Holdings, and LLC and T-System Holding LLC.

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