Financial Analysis: FactSet Research Systems (FDS) versus Twitter (TWTR)
FactSet Research Systems (NYSE:FDS) and Twitter (NYSE:TWTR) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.
Risk and Volatility
FactSet Research Systems has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Twitter has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for FactSet Research Systems and Twitter, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|FactSet Research Systems||1||10||0||0||1.91|
FactSet Research Systems presently has a consensus price target of $230.09, suggesting a potential downside of 5.33%. Twitter has a consensus price target of $35.58, suggesting a potential upside of 10.23%. Given Twitter’s stronger consensus rating and higher possible upside, analysts clearly believe Twitter is more favorable than FactSet Research Systems.
FactSet Research Systems pays an annual dividend of $2.56 per share and has a dividend yield of 1.1%. Twitter does not pay a dividend. FactSet Research Systems pays out 30.0% of its earnings in the form of a dividend. FactSet Research Systems has increased its dividend for 13 consecutive years.
Valuation & Earnings
This table compares FactSet Research Systems and Twitter’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FactSet Research Systems||$1.35 billion||6.85||$267.08 million||$8.53||28.49|
|$3.04 billion||8.14||$1.21 billion||$0.55||58.69|
Twitter has higher revenue and earnings than FactSet Research Systems. FactSet Research Systems is trading at a lower price-to-earnings ratio than Twitter, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
92.2% of FactSet Research Systems shares are held by institutional investors. Comparatively, 68.4% of Twitter shares are held by institutional investors. 2.3% of FactSet Research Systems shares are held by company insiders. Comparatively, 6.6% of Twitter shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares FactSet Research Systems and Twitter’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|FactSet Research Systems||20.47%||62.54%||24.45%|
Twitter beats FactSet Research Systems on 10 of the 17 factors compared between the two stocks.
FactSet Research Systems Company Profile
FactSet Research Systems Inc. provides integrated financial information and analytical applications to the investment community in the United States, Europe, and the Asia Pacific. The company delivers insight and information to financial investment professionals through its analytics, services, contents, and technologies. Its applications suite offers tools and resources, including company and industry analyses, full screening tools, portfolio analysis, risk profiles, alpha-testing, portfolio optimization, and research management solutions. The company enables its clients to streamline real-time data and historical information comprising quotes, estimates, news, and commentary, as well as provides proprietary and third-party content through desktop, Web, mobile, and off-platform solutions. It serves portfolio managers, investment research professionals, investment bankers, risk and performance analysts, and wealth advisors. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.
Twitter Company Profile
Twitter, Inc. operates as a platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter, a platform that allows users to consume, create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable its advertisers to promote their brands, products, and services. In addition, the company offers a set of tools, public APIs, and embeddable widgets for developers to contribute their content to its platform, syndicate and distribute Twitter content across their properties, and enhance their Websites and applications with Twitter content. Further, it provides subscription access to its public data feed for data partners. The company operates in the United States and internationally. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California.
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