Analyzing AlTi Global (NASDAQ:ALTI) and FactSet Research Systems (NYSE:FDS)

FactSet Research Systems (NYSE:FDS) and AlTi Global (NASDAQ:ALTI) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for FactSet Research Systems and AlTi Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FactSet Research Systems	6	10	1	1	1.83
AlTi Global	2	0	0	0	1.00

FactSet Research Systems presently has a consensus target price of $257.57, suggesting a potential downside of 16.05%. Given FactSet Research Systems’ stronger consensus rating and higher possible upside, equities research analysts clearly believe FactSet Research Systems is more favorable than AlTi Global.

Earnings and Valuation

This table compares FactSet Research Systems and AlTi Global”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FactSet Research Systems	$2.44 billion	4.48	$597.04 million	$15.18	20.21
AlTi Global	$276.62 million	2.19	-$119.70 million	($1.39)	-2.80

FactSet Research Systems has higher revenue and earnings than AlTi Global. AlTi Global is trading at a lower price-to-earnings ratio than FactSet Research Systems, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

91.2% of FactSet Research Systems shares are held by institutional investors. Comparatively, 3.6% of AlTi Global shares are held by institutional investors. 1.2% of FactSet Research Systems shares are held by company insiders. Comparatively, 2.2% of AlTi Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares FactSet Research Systems and AlTi Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FactSet Research Systems	23.21%	30.68%	15.43%
AlTi Global	-40.86%	-1.61%	-0.74%

Volatility & Risk

FactSet Research Systems has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, AlTi Global has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Summary

FactSet Research Systems beats AlTi Global on 13 of the 15 factors compared between the two stocks.

About FactSet Research Systems

FactSet Research Systems Inc., a financial data company, provides integrated financial information and analytical applications to the investment community in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company delivers insight and information through the workflow solutions of research, analytics and trading, content and technology solutions, and wealth. It serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.

About AlTi Global

AlTi Global, Inc. provides wealth and asset management services individuals, families, foundations, and institutions in the United States, the United Kingdom, and internationally. It operates through two segments, Wealth Management and Strategic Alternatives. The company offers discretionary investment management, non-discretionary investment advisory, and investment management and advisory services. It also provides trust and administration services, such as entity formation and management; creating or modifying trust instruments and administrative practices to meet beneficiary needs; corporate, trustee-executor, and fiduciary services; provision of directors and company secretarial services; administering entity ownership of intellectual property rights; advisory and administration services in connection with investments in marine and aviation assets; and administering entity ownership of fine art and collectibles. In addition, the company offers family office services comprising bookkeeping and back office services, private foundation management and grant making, oversight of trust administration, financial tracking and reporting, cash flow management and bill pay, and other financial services, as well as clients estate and wealth planning, family governance and education, and philanthropic and strategic services. It also provides ancillary fund management services, including investments, financial planning and strategy, sales and marketing, and back and middle office infrastructure and administration. The company offers strategic advisory, corporate advisory, brokerage, and placement agency services; structures, arranges, and provides investors with co-investment opportunities in various alternative assets; manages and advises public and private investment funds, as well as alternatives platform. The company was formerly known as Alvarium Tiedemann Holdings, Inc. and changed its name to AlTi Global, Inc. in April 2023. The company is based in New York, New York.