Contrasting FactSet Research Systems (FDS) and Its Peers

FactSet Research Systems (NYSE:FDS) is one of 1,746 publicly-traded companies in the “Capital Markets” industry, but how does it compare to its rivals? We will compare FactSet Research Systems to related companies based on the strength of its institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Volatility and Risk

FactSet Research Systems has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, FactSet Research Systems’ rivals have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Valuation and Earnings

This table compares FactSet Research Systems and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
FactSet Research Systems	$2.48 billion	$533.48 million	22.80
FactSet Research Systems Competitors	$2.39 billion	$398.05 million	14.94

FactSet Research Systems has higher revenue and earnings than its rivals. FactSet Research Systems is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares FactSet Research Systems and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FactSet Research Systems	21.54%	31.66%	15.73%
FactSet Research Systems Competitors	314.66%	9.82%	3.42%

Insider & Institutional Ownership

91.2% of FactSet Research Systems shares are held by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are held by institutional investors. 0.2% of FactSet Research Systems shares are held by company insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for FactSet Research Systems and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FactSet Research Systems	6	10	2	1	1.89
FactSet Research Systems Competitors	5615	20217	22568	650	2.37

FactSet Research Systems currently has a consensus target price of $284.93, suggesting a potential downside of 14.17%. As a group, “Capital Markets” companies have a potential upside of 23.94%. Given FactSet Research Systems’ rivals stronger consensus rating and higher possible upside, analysts plainly believe FactSet Research Systems has less favorable growth aspects than its rivals.

Dividends

FactSet Research Systems pays an annual dividend of $4.64 per share and has a dividend yield of 1.4%. FactSet Research Systems pays out 31.9% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.2% of their earnings in the form of a dividend. FactSet Research Systems has increased its dividend for 27 consecutive years. FactSet Research Systems lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

FactSet Research Systems rivals beat FactSet Research Systems on 8 of the 15 factors compared.

About FactSet Research Systems

FactSet Research Systems provides financial data, analytics, and workflow technology to investment professionals and businesses. Its platform brings together market and company data, research, and analytical tools to help clients evaluate investments, manage portfolios, and support financial decision-making. The company offers subscription-based products and services, including its workstation, data feeds, application programming interfaces, and portfolio analytics. Its clients include investment managers, investment banks, wealth managers, private equity firms, and corporations.