IHS (NYSE: IHS) and Relx Plc (NYSE:RELX) are both mid-cap professional information services – nec companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Valuation and Earnings

This table compares IHS and Relx Plc’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
IHS N/A N/A N/A $2.69 43.59
Relx Plc $9.91 billion 2.49 $1.57 billion $0.41 56.46

Relx Plc has higher revenue and earnings than IHS. IHS is trading at a lower price-to-earnings ratio than Relx Plc, indicating that it is currently the more affordable of the two stocks.

Dividends

Relx Plc pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. IHS does not pay a dividend. Relx Plc pays out 117.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

IHS has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Relx Plc has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Insider and Institutional Ownership

2.2% of Relx Plc shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares IHS and Relx Plc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IHS 7.63% 8.19% 2.73%
Relx Plc N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for IHS and Relx Plc, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IHS 0 2 1 0 2.33
Relx Plc 0 1 3 0 2.75

IHS currently has a consensus target price of $44.67, indicating a potential downside of 61.90%. Given IHS’s higher possible upside, analysts plainly believe IHS is more favorable than Relx Plc.

Summary

IHS beats Relx Plc on 7 of the 12 factors compared between the two stocks.

IHS Company Profile

IHS Inc. develops source of information, insight and analytics in different areas of business. The Company’s segments include Resources, Transportation and Consolidated Markets & Solutions. The Company’s Resources segment includes its Energy and Chemicals product offerings. Its Transportation segment includes its Automotive; Maritime & Trade, and Aerospace, Defense & Security product offerings. Its Consolidated Markets & Solutions segment includes its Product Design; Technology, Media & Telecom, and Economics & Country Risk product offerings. It provides authoritative analysis and forecasts of sales and production for light vehicles, medium and heavy commercial vehicles, powertrain, components and technology systems across various markets. Its product design offerings include content and analysis on various engineering and technical standards, codes, reference books, journals, and other scientific and technical documents, as well as software-based engineering decision engines.

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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