IHS Markit (NASDAQ: INFO) is one of 44 public companies in the “Computer programming, data processing, & other computer related” industry, but how does it weigh in compared to its rivals? We will compare IHS Markit to similar businesses based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, valuation, dividends and risk.

Insider & Institutional Ownership

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99.2% of IHS Markit shares are held by institutional investors. Comparatively, 49.3% of shares of all “Computer programming, data processing, & other computer related” companies are held by institutional investors. 2.7% of IHS Markit shares are held by company insiders. Comparatively, 13.9% of shares of all “Computer programming, data processing, & other computer related” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for IHS Markit and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IHS Markit 1 3 9 0 2.62
IHS Markit Competitors 506 1906 4622 229 2.63

IHS Markit presently has a consensus price target of $52.17, indicating a potential upside of 6.92%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 8.23%. Given IHS Markit’s rivals stronger consensus rating and higher possible upside, analysts clearly believe IHS Markit has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares IHS Markit and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
IHS Markit $3.60 billion $416.90 million 29.04
IHS Markit Competitors $6.96 billion $964.57 million 38.50

IHS Markit’s rivals have higher revenue and earnings than IHS Markit. IHS Markit is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

IHS Markit has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, IHS Markit’s rivals have a beta of 1.41, meaning that their average share price is 41% more volatile than the S&P 500.

Profitability

This table compares IHS Markit and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IHS Markit 16.06% 9.33% 5.12%
IHS Markit Competitors -16.11% -45.92% -1.15%

Summary

IHS Markit rivals beat IHS Markit on 8 of the 13 factors compared.

IHS Markit Company Profile

IHS Markit Ltd., formerly Markit Ltd., is a provider of critical information and analytics for the major industries, financial markets and governments. The Company operates through four segments: Resources, Transportation, Consolidated Markets & Solutions (CMS) and Financial Services. The Resources segment includes its energy and chemicals product offerings. Its energy offerings are focused on upstream, midstream, downstream and power/gas/coal/renewables (PGCR) services. The Transportation segment includes its aerospace, defense and security (AD&S); automotive, and maritime and trade (M&T) product offerings. The CMS segment includes its product design; technology, media and telecommunication, and economics and country risk (ECR) product offerings. The Company’s Financial Services segment provides pricing and reference data, indices, valuation and trading services, trade processing, enterprise software and managed services.

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