Reviewing Relx (RELX) & The Competition

Relx (NYSE: RELX) is one of 21 public companies in the “Professional Information Services” industry, but how does it weigh in compared to its peers? We will compare Relx to related companies based on the strength of its valuation, institutional ownership, analyst recommendations, risk, earnings, dividends and profitability.

Earnings and Valuation

This table compares Relx and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Relx $9.91 billion $1.57 billion 55.98
Relx Competitors $3.13 billion $588.72 million 1,331.40

Relx has higher revenue and earnings than its peers. Relx is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Relx has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Relx’s peers have a beta of 1.02, suggesting that their average share price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Relx and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Relx 0 0 2 0 3.00
Relx Competitors 78 550 701 6 2.48

As a group, “Professional Information Services” companies have a potential downside of 3.87%. Given Relx’s peers higher probable upside, analysts clearly believe Relx has less favorable growth aspects than its peers.

Insider & Institutional Ownership

2.4% of Relx shares are owned by institutional investors. Comparatively, 62.6% of shares of all “Professional Information Services” companies are owned by institutional investors. 10.5% of shares of all “Professional Information Services” companies are owned 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.

Profitability

This table compares Relx and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Relx N/A N/A N/A
Relx Competitors 4.45% 18.69% 4.09%

Dividends

Relx pays an annual dividend of $0.48 per share and has a dividend yield of 2.0%. Relx pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Professional Information Services” companies pay a dividend yield of 1.5% and pay out 39.4% of their earnings in the form of a dividend.

Summary

Relx peers beat Relx on 10 of the 15 factors compared.

Relx 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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