Dun & Bradstreet (NYSE: DNB) and Equifax (NYSE:EFX) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Earnings & Valuation
This table compares Dun & Bradstreet and Equifax’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dun & Bradstreet||$1.74 billion||2.48||$140.90 million||$7.36||15.90|
|Equifax||$3.36 billion||4.21||$587.30 million||$5.97||19.73|
Equifax has higher revenue and earnings than Dun & Bradstreet. Dun & Bradstreet is trading at a lower price-to-earnings ratio than Equifax, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and target prices for Dun & Bradstreet and Equifax, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dun & Bradstreet||0||3||2||0||2.40|
Dun & Bradstreet presently has a consensus target price of $129.00, suggesting a potential upside of 10.26%. Equifax has a consensus target price of $128.21, suggesting a potential upside of 8.83%. Given Dun & Bradstreet’s higher possible upside, research analysts clearly believe Dun & Bradstreet is more favorable than Equifax.
Insider and Institutional Ownership
91.5% of Dun & Bradstreet shares are owned by institutional investors. Comparatively, 93.4% of Equifax shares are owned by institutional investors. 0.4% of Dun & Bradstreet shares are owned by insiders. Comparatively, 1.3% of Equifax shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Dun & Bradstreet has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Equifax has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.
This table compares Dun & Bradstreet and Equifax’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dun & Bradstreet||8.09%||-30.74%||11.75%|
Dun & Bradstreet pays an annual dividend of $2.09 per share and has a dividend yield of 1.8%. Equifax pays an annual dividend of $1.56 per share and has a dividend yield of 1.3%. Dun & Bradstreet pays out 28.4% of its earnings in the form of a dividend. Equifax pays out 26.1% 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. Dun & Bradstreet has raised its dividend for 11 consecutive years and Equifax has raised its dividend for 6 consecutive years. Dun & Bradstreet is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Equifax beats Dun & Bradstreet on 11 of the 17 factors compared between the two stocks.
About Dun & Bradstreet
The Dun & Bradstreet Corporation is the source of commercial data, analytics and insight on businesses. The Company operates through two segments: Americas, which consists of its operations in the United States and Canada, and Non-Americas, which consists of its operations in the United Kingdom, Greater China, India, and its European and Asia Pacific Worldwide Networks. The Company provides Risk Management Solutions and Sales and Marketing Solutions. The Company provides DNBi and D&B Credit that are subscription-based online applications, which offers customers real time access to its complete and up-to-date global information, monitoring and portfolio analysis. The Company provides D&B Optimizer solution, which transforms its customers’ prospects and data into up-to-date, actionable commercial insight, facilitating a single customer view across multiple systems and touch points, such as marketing and billing databases, and enables a customer to make sales and marketing decisions.
Equifax Inc. provides information solutions and human resources business process outsourcing services for businesses, governments, and consumers. The company operates through four segments: U.S. Information Solutions (USIS), International, Workforce Solutions, and Global Consumer Solutions. The USIS segment offers consumer and commercial information services, such as credit information and credit scoring, credit modeling and portfolio analytics, locate, fraud detection and prevention, identity verification, and other consulting; mortgage loan origination information; financial marketing; and identity management services. The International segment provides information service products, which include consumer and commercial services, such as credit and financial information, and credit scoring and modeling; and credit and other marketing products and services, as well as offers information, technology, and services to support debt collections and recovery management. The Workforce Solutions segment provides employment, income, and social security number verification services; and payroll-based transaction and employment tax management services. The Global Consumer Solutions segment offers credit information, credit monitoring, and identity theft protection products directly to consumers through the Internet and hard-copy formats. It serves customers in financial service, mortgage, employers, consumer, commercial, telecommunication, retail, automotive, utility, brokerage, healthcare, and insurance industries, as well as state and federal governments. The company operates in the United States, Canada, Australia, New Zealand, the United Kingdom, Spain, Portugal, Argentina, Brazil, Chile, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Uruguay, Peru, the Republic of Ireland, Russia, India, Cambodia, Malaysia, Singapore, and Dubai. Equifax Inc. was founded in 1899 and is headquartered in Atlanta, Georgia.
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