Reviewing FactSet Research Systems (FDS) & John Wiley & Sons (NYSE:JW.A)
FactSet Research Systems (NYSE: FDS) and John Wiley & Sons (NYSE:JW.A) are both mid-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitabiliy, institutional ownership, dividends and earnings.
Earnings and Valuation
This table compares FactSet Research Systems and John Wiley & Sons’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|FactSet Research Systems||$1.18 billion||5.39||$414.14 million||$8.55||18.98|
|John Wiley & Sons||N/A||N/A||N/A||$1.96||N/A|
FactSet Research Systems has higher revenue and earnings than John Wiley & Sons. John Wiley & Sons is trading at a lower price-to-earnings ratio than FactSet Research Systems, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
94.6% of FactSet Research Systems shares are held by institutional investors. Comparatively, 74.6% of John Wiley & Sons shares are held by institutional investors. 2.7% of FactSet Research Systems shares are held by company insiders. Comparatively, 7.5% of John Wiley & Sons shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current ratings for FactSet Research Systems and John Wiley & Sons, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|FactSet Research Systems||3||7||1||0||1.82|
|John Wiley & Sons||0||1||1||0||2.50|
FactSet Research Systems presently has a consensus target price of $165.00, suggesting a potential upside of 1.68%. John Wiley & Sons has a consensus target price of $54.00, suggesting a potential upside of Infinity. Given John Wiley & Sons’ stronger consensus rating and higher possible upside, analysts clearly believe John Wiley & Sons is more favorable than FactSet Research Systems.
This table compares FactSet Research Systems and John Wiley & Sons’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|FactSet Research Systems||29.02%||55.72%||25.28%|
|John Wiley & Sons||6.61%||17.39%||6.17%|
Volatility & Risk
FactSet Research Systems has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, John Wiley & Sons has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.
FactSet Research Systems pays an annual dividend of $2.24 per share and has a dividend yield of 1.4%. John Wiley & Sons pays an annual dividend of $1.28 per share. FactSet Research Systems pays out 26.2% of its earnings in the form of a dividend. John Wiley & Sons pays out 65.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. John Wiley & Sons has increased its dividend for 11 consecutive years. FactSet Research Systems is clearly the better dividend stock, given its higher yield and lower payout ratio.
FactSet Research Systems beats John Wiley & Sons on 9 of the 14 factors compared between the two stocks.
About FactSet Research Systems
Factset Research Systems Inc. is engaged in providing integrated financial information and big data analytical applications for the global investment community. The Company’s segments include the U.S., Europe and Asia Pacific. The U.S. segment services finance professionals, including financial institutions throughout the Americas. The European segment maintains offices in France, Germany, Italy, Ireland, Latvia, Luxembourg, the Netherlands, Spain, South Africa, Sweden and Dubai. The Asia Pacific segment maintains office locations in Australia, Hong Kong, Singapore and Mumbai, India. The Company delivers insight and information to investment professionals through its analytics, service, content, and technology. Its offerings include a complete services solution focused on verifying, cleaning and loading portfolio data across asset classes, and an execution management system. The Company offers third-party content through desktop, wireless and off-platform solutions.
About John Wiley & Sons
John Wiley & Sons, Inc. provides knowledge and knowledge-enabled services in the areas of research, professional practice and education. The Company operates through three segments: Research, Professional Development and Education. Through the Research segment, the Company provides digital and print scientific, technical, medical and scholarly journals, reference works, books, database services and advertising. The Professional Development segment provides digital and print books, corporate learning solutions, employment talent solutions and training services, and test prep and certification. In the Education segment, the Company provides print and digital content, and education solutions, including online program management services for higher education institutions and course management tools for instructors and students. The Company is engaged in developing and cross-marketing products to its customer base of researchers, professionals, students and educators.
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