Morningstar (NASDAQ: MORN) and Relx Plc (NYSE:RELX) are both mid-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.
Risk and Volatility
Morningstar has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Relx Plc has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.
Earnings and Valuation
This table compares Morningstar and Relx Plc’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Morningstar||$847.00 million||4.12||$228.30 million||$3.82||21.47|
|Relx Plc||$9.51 billion||4.76||$2.87 billion||N/A||N/A|
Relx Plc has higher revenue and earnings than Morningstar.
This is a summary of recent recommendations for Morningstar and Relx Plc, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Morningstar pays an annual dividend of $0.92 per share and has a dividend yield of 1.1%. Relx Plc pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Morningstar pays out 24.1% of its earnings in the form of a dividend.
Institutional and Insider Ownership
38.3% of Morningstar shares are held by institutional investors. Comparatively, 2.2% of Relx Plc shares are held by institutional investors. 57.4% of Morningstar shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Morningstar and Relx Plc’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Relx Plc beats Morningstar on 7 of the 12 factors compared between the two stocks.
Morningstar, Inc. is a provider of independent investment research in North America, Europe, Australia, and Asia. The Company focuses to create products that help investors reach their financial goals. It offers a range of data, software, research, and investment management offerings for financial advisors, asset managers, sponsors, and individual investors. It provides data and research insights on a range of investment offerings, including managed investment products, listed companies, capital markets, and real-time global market data. It conducts its business operations outside of the United States through subsidiaries in countries, including Australia, Brazil, Canada, Chile, Denmark, France, Germany, India, Italy, Japan, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, People’s Republic of China (both Hong Kong and the mainland), Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, the United Arab Emirates, and the United Kingdom.
About Relx Plc
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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