TransUnion (TRU) & Its Rivals Critical Review

TransUnion (NYSE:TRU) is one of 203 public companies in the “Professional Services” industry, but how does it compare to its rivals? We will compare TransUnion to related businesses based on the strength of its earnings, valuation, risk, profitability, analyst recommendations, institutional ownership and dividends.

Dividends

TransUnion pays an annual dividend of $0.54 per share and has a dividend yield of 0.7%. TransUnion pays out 13.1% of its earnings in the form of a dividend. As a group, “Professional Services” companies pay a dividend yield of 2.5% and pay out -167.3% of their earnings in the form of a dividend. TransUnion has increased its dividend for 1 consecutive years. TransUnion lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TransUnion	15.83%	16.51%	6.77%
TransUnion Competitors	0.25%	36.77%	4.43%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
TransUnion	$5.04 billion	$455.40 million	19.93
TransUnion Competitors	$3.30 billion	$228.39 million	37.53

TransUnion has higher revenue and earnings than its rivals. TransUnion 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.

Institutional & Insider Ownership

57.3% of shares of all “Professional Services” companies are held by institutional investors. 0.4% of TransUnion shares are held by insiders. Comparatively, 17.2% of shares of all “Professional Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

TransUnion has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, TransUnion’s rivals have a beta of 0.96, meaning that their average stock price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for TransUnion and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransUnion	1	8	10	0	2.47
TransUnion Competitors	1595	6491	9188	433	2.48

TransUnion presently has a consensus price target of $90.72, indicating a potential upside of 10.73%. As a group, “Professional Services” companies have a potential upside of 27.68%. Given TransUnion’s rivals stronger consensus rating and higher possible upside, analysts clearly believe TransUnion has less favorable growth aspects than its rivals.

Summary

TransUnion rivals beat TransUnion on 9 of the 15 factors compared.

TransUnion Company Profile

TransUnion is a global information and insights company that helps businesses assess risk, prevent fraud and make informed decisions. Its services include credit reporting and scoring, identity verification, fraud detection, and data and analytics solutions for industries such as financial services, retail, insurance and telecommunications. The company also provides consumers with access to credit information and tools to monitor and manage their financial identities. Its offerings include credit reports, credit monitoring and identity-protection services.