IHS (IHS) and Equifax (EFX) Critical Comparison

IHS (NYSE: IHS) and Equifax (NYSE:EFX) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Earnings & Valuation

This table compares IHS and Equifax’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
IHS N/A N/A N/A $3.58 32.75
Equifax $3.29 billion 5.23 $1.22 billion $4.72 30.26

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

Profitability

This table compares IHS and Equifax’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%
Equifax 17.44% 24.88% 10.51%

Risk & Volatility

IHS has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Equifax has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Insider & Institutional Ownership

89.6% of Equifax shares are held by institutional investors. 1.3% of Equifax shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Equifax pays an annual dividend of $1.56 per share and has a dividend yield of 1.1%. IHS does not pay a dividend. Equifax pays out 33.1% of its earnings in the form of a dividend. Equifax has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations for IHS and Equifax, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IHS 0 2 1 0 2.33
Equifax 1 2 8 0 2.64

IHS presently has a consensus target price of $44.67, indicating a potential downside of 61.90%. Equifax has a consensus target price of $146.60, indicating a potential upside of 2.65%. Given Equifax’s stronger consensus rating and higher possible upside, analysts clearly believe Equifax is more favorable than IHS.

Summary

Equifax beats IHS on 12 of the 14 factors compared between the two stocks.

About IHS

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.

About Equifax

Equifax Inc. is a global provider of information solutions and human resources business process outsourcing services for businesses, governments and consumers. The Company operates in four segments: U.S. Information Solutions (USIS), International, Workforce Solutions and Global Consumer Solutions. Its products and services are based on databases of consumer and business information derived from various sources, including credit, financial assets, telecommunications and utility payments, employment, income, demographic and marketing data. It uses statistical techniques and software tools to analyze all available data, creating customized insights, decision-making solutions and processing services for its clients. It helps consumers understand, manage and protect their personal information and make more informed financial decisions. The Company also provides information, technology and services to support debt collections and recovery management.

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