Broadridge Financial Solutions (NYSE:BR) versus Mastech Digital (NYSE:MHH) Financial Survey

Broadridge Financial Solutions (NYSE:BR) and Mastech Digital (NYSE:MHH) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

90.0% of Broadridge Financial Solutions shares are owned by institutional investors. Comparatively, 18.4% of Mastech Digital shares are owned by institutional investors. 1.1% of Broadridge Financial Solutions shares are owned by insiders. Comparatively, 42.9% of Mastech Digital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Broadridge Financial Solutions and Mastech Digital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadridge Financial Solutions	$7.48 billion	2.62	$1.12 billion	$9.62	17.86
Mastech Digital	$176.49 million	0.52	-$7.14 million	$0.17	44.99

Broadridge Financial Solutions has higher revenue and earnings than Mastech Digital. Broadridge Financial Solutions is trading at a lower price-to-earnings ratio than Mastech Digital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Broadridge Financial Solutions and Mastech Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadridge Financial Solutions	15.04%	40.25%	12.97%
Mastech Digital	1.71%	8.20%	6.36%

Volatility & Risk

Broadridge Financial Solutions has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Mastech Digital has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Broadridge Financial Solutions and Mastech Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadridge Financial Solutions	0	4	4	0	2.50
Mastech Digital	0	0	0	0	0.00

Broadridge Financial Solutions presently has a consensus target price of $215.86, suggesting a potential upside of 25.62%. Given Broadridge Financial Solutions’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Broadridge Financial Solutions is more favorable than Mastech Digital.

Summary

Broadridge Financial Solutions beats Mastech Digital on 12 of the 14 factors compared between the two stocks.

About Broadridge Financial Solutions

Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry. The company's Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote processing services; and distributes regulatory reports, class action, and corporate action/reorganization event information, as well as tax reporting solutions. It also offers ProxyEdge, an electronic proxy delivery and voting solution; data-driven solutions and an end-to-end platform for content management, composition, and omni-channel distribution of regulatory, marketing, and transactional information, as well as mutual fund trade processing services; solutions for public corporations and mutual funds; data and analytics solutions; SEC filing and capital markets transaction services; registrar, stock transfer, and record-keeping services; and omni-channel customer communications solutions, as well as operates Broadridge Communications Cloud platform that creates, delivers, and manages communications and customer engagement activities. Its Global Technology and Operations segment provides solutions that automate the front-to-back transaction lifecycle of equity, mutual fund, fixed income, foreign exchange and exchange-traded derivatives, order capture and execution, trade confirmation, margin, cash management, clearing and settlement, reference data management, reconciliations, securities financing and collateral management, asset servicing, compliance and regulatory reporting, portfolio accounting, and custody-related services. This segment also offers business process outsourcing services; technology solutions, such portfolio management, compliance, fee billing, and operational support solutions; and capital market and wealth and investment management solutions. The company was founded in 1962 and is headquartered in Lake Success, New York.

About Mastech Digital

Mastech Digital, Inc., together with its subsidiaries, provides digital transformation IT services to large, medium-sized, and small companies in the United States. The company operates through Data and Analytics Services and IT Staffing Services segments. It offers data management and analytics services, including project-based consulting services in the areas of master data management, enterprise data integration, big data and analytics, and digital transformation by using onsite and offshore resources. In addition, the company provides a range of IT staffing services in the areas of data management and analytics, cloud, mobility, social, automation, business intelligence/data warehousing, web services, enterprise resource planning and customer resource management, and e-business solutions. Further, it offers digital transformation services, including digital learning services; and cloud-based enterprise application across sales, marketing, and customer service organizations. The company provides its services across various industry verticals, such as financial services, retail, healthcare, manufacturing, government, telecommunications, and transportation. The company was formerly known as Mastech Holdings, Inc. and changed its name to Mastech Digital, Inc. in September 2016. Mastech Digital, Inc. was founded in 1986 and is headquartered in Pittsburgh, Pennsylvania.