Equifax (EFX) versus RELX PLC (RELX) Critical Analysis
Equifax (NYSE: EFX) and RELX PLC (NYSE:RELX) are both large-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Volatility and Risk
Equifax has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, RELX PLC has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.
Equifax pays an annual dividend of $1.56 per share and has a dividend yield of 1.5%. RELX PLC pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Equifax pays out 33.1% of its earnings in the form of a dividend. RELX PLC has increased its dividend for 5 consecutive years. RELX PLC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent ratings and recommmendations for Equifax and RELX PLC, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Equifax currently has a consensus price target of $130.27, suggesting a potential upside of 22.90%. Given Equifax’s higher possible upside, analysts plainly believe Equifax is more favorable than RELX PLC.
Valuation & Earnings
This table compares Equifax and RELX PLC’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Equifax||$3.29 billion||3.88||$1.22 billion||$4.72||22.46|
|RELX PLC||$9.71 billion||4.64||$2.93 billion||N/A||N/A|
RELX PLC has higher revenue and earnings than Equifax.
This table compares Equifax and RELX PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
90.0% of Equifax shares are owned by institutional investors. Comparatively, 2.2% of RELX PLC shares are owned by institutional investors. 1.3% of Equifax shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Equifax Company Profile
Equifax Inc. is a global provider of information solutions and human resources business process outsourcing services for businesses, governments and consumers. The Company operates in four segments: U.S. Information Solutions (USIS), International, Workforce Solutions and Global Consumer Solutions. Its products and services are based on databases of consumer and business information derived from various sources, including credit, financial assets, telecommunications and utility payments, employment, income, demographic and marketing data. It uses statistical techniques and software tools to analyze all available data, creating customized insights, decision-making solutions and processing services for its clients. It helps consumers understand, manage and protect their personal information and make more informed financial decisions. The Company also provides information, technology and services to support debt collections and recovery management.
RELX PLC Company Profile
RELX PLC is a holding company, which holds interests in RELX Group plc. RELX Group is a global provider of information and analytics for professional and business customers across industries. The Company operates in four segments: Scientific, Technical & Medical; Risk & Business Analytics; Legal, and Exhibitions. The Company’s Scientific, Technical & Medical segment provides information and analytics that help institutions and professionals progress science and advance healthcare. The Risk & Business Analytics segment provides solutions and decision tools that combine public and industry-specific content with technology and analytics. The Legal segment is a provider of information and analytics to professionals in legal, corporate, government and non-profit organizations. Its Exhibitions segment consists of Reed Exhibitions, which is an exhibitions business, with events in over 30 countries.
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