FactSet Research Systems (NYSE: FDS) and TheStreet (NASDAQ:TST) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
93.9% of FactSet Research Systems shares are owned by institutional investors. Comparatively, 32.9% of TheStreet shares are owned by institutional investors. 2.7% of FactSet Research Systems shares are owned by insiders. Comparatively, 9.7% of TheStreet shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares FactSet Research Systems and TheStreet’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FactSet Research Systems||$1.22 billion||6.43||$258.25 million||$6.62||30.38|
|TheStreet||$63.50 million||1.12||-$17.51 million||($0.34)||-4.26|
FactSet Research Systems has higher revenue and earnings than TheStreet. TheStreet 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.
This is a breakdown of recent recommendations and price targets for FactSet Research Systems and TheStreet, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|FactSet Research Systems||1||10||1||0||2.00|
FactSet Research Systems presently has a consensus price target of $183.55, suggesting a potential downside of 8.73%. TheStreet has a consensus price target of $2.67, suggesting a potential upside of 83.91%. Given TheStreet’s stronger consensus rating and higher probable upside, analysts clearly believe TheStreet is more favorable than FactSet Research Systems.
FactSet Research Systems pays an annual dividend of $2.24 per share and has a dividend yield of 1.1%. TheStreet does not pay a dividend. FactSet Research Systems pays out 33.8% of its earnings in the form of a dividend. TheStreet has raised its dividend for 12 consecutive years.
This table compares FactSet Research Systems and TheStreet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|FactSet Research Systems||20.76%||54.65%||22.83%|
Risk and Volatility
FactSet Research Systems has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, TheStreet has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
FactSet Research Systems beats TheStreet on 11 of the 17 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.
TheStreet Company Profile
TheStreet, Inc. (TheStreet) is a digital financial media company focused on the financial, and mergers and acquisitions environment. The Company’s collection of digital services provides users, subscribers and advertisers with a range of content and tools through a range of online, social media, tablet and mobile channels. With a suite of digital services, TheStreet offers the tools and insights needed to make informed decisions about earning, investing, saving and spending money. TheStreet provides interactive multimedia coverage of the financial markets, economy, industry trends, investment and financial planning. Its subscription products are designed to address the needs of investors with various areas of interest, including fledgling investors, day and swing traders, and fundamental, technical and options traders. Its RateWatch business publishes bank rate market information on a subscription basis to financial institutions and government agencies.
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