Critical Review: TaskUs (NASDAQ:TASK) & Broadridge Financial Solutions (NYSE:BR)

Broadridge Financial Solutions (NYSE:BR) and TaskUs (NASDAQ:TASK) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

90.0% of Broadridge Financial Solutions shares are owned by institutional investors. Comparatively, 44.6% of TaskUs shares are owned by institutional investors. 1.0% of Broadridge Financial Solutions shares are owned by company insiders. Comparatively, 31.9% of TaskUs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Broadridge Financial Solutions and TaskUs, 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
TaskUs	1	5	1	0	2.00

Broadridge Financial Solutions currently has a consensus price target of $216.00, suggesting a potential upside of 28.25%. TaskUs has a consensus price target of $9.60, suggesting a potential upside of 17.36%. Given Broadridge Financial Solutions’ stronger consensus rating and higher possible upside, equities analysts clearly believe Broadridge Financial Solutions is more favorable than TaskUs.

Earnings & Valuation

This table compares Broadridge Financial Solutions and TaskUs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadridge Financial Solutions	$7.48 billion	2.54	$1.12 billion	$9.62	17.51
TaskUs	$1.18 billion	0.63	$102.28 million	$1.16	7.05

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

Volatility & Risk

Broadridge Financial Solutions has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, TaskUs has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500.

Profitability

This table compares Broadridge Financial Solutions and TaskUs’ 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%
TaskUs	8.75%	27.02%	11.58%

Summary

Broadridge Financial Solutions beats TaskUs 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 TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.