Reviewing IHS (IHS) & FactSet Research Systems (FDS)
FactSet Research Systems (NYSE: FDS) and IHS (NYSE:IHS) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitabiliy and analyst recommendations.
Insider and Institutional Ownership
94.3% of FactSet Research Systems shares are owned by institutional investors. 2.7% of FactSet Research Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
FactSet Research Systems has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, IHS has a beta of 0.96, suggesting that its stock price is 4% less 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%. IHS does not pay a dividend. FactSet Research Systems pays out 26.2% of its earnings in the form of a dividend. IHS has raised its dividend for 11 consecutive years.
This is a breakdown of current ratings for FactSet Research Systems and IHS, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|FactSet Research Systems||3||7||1||0||1.82|
FactSet Research Systems currently has a consensus price target of $165.00, suggesting a potential upside of 1.63%. IHS has a consensus price target of $44.67, suggesting a potential downside of 61.90%. Given FactSet Research Systems’ higher probable upside, equities analysts plainly believe FactSet Research Systems is more favorable than IHS.
Valuation and Earnings
This table compares FactSet Research Systems and IHS’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|FactSet Research Systems||$1.18 billion||5.43||$410.94 million||$8.55||18.99|
FactSet Research Systems has higher revenue and earnings than IHS. FactSet Research Systems is trading at a lower price-to-earnings ratio than IHS, indicating that it is currently the more affordable of the two stocks.
This table compares FactSet Research Systems and IHS’s 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%|
FactSet Research Systems beats IHS on 9 of the 13 factors compared between the two stocks.
FactSet Research Systems Company Profile
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.
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.
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