Analyzing Equifax (EFX) & John Wiley & Sons (JW.A)

Equifax (NYSE: EFX) and John Wiley & Sons (NYSE:JW.A) are both mid-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Equifax and John Wiley & Sons, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equifax 1 3 10 0 2.64
John Wiley & Sons 0 1 1 0 2.50

Equifax currently has a consensus target price of $133.71, indicating a potential upside of 36.10%. John Wiley & Sons has a consensus target price of $53.00, indicating a potential upside of Infinity. Given John Wiley & Sons’ higher possible upside, analysts clearly believe John Wiley & Sons is more favorable than Equifax.

Dividends

Equifax pays an annual dividend of $1.56 per share and has a dividend yield of 1.6%. John Wiley & Sons pays an annual dividend of $1.28 per share. Equifax pays out 33.1% of its earnings in the form of a dividend. John Wiley & Sons pays out 80.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. John Wiley & Sons has increased its dividend for 5 consecutive years. Equifax is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

90.0% of Equifax shares are held by institutional investors. Comparatively, 73.6% of John Wiley & Sons shares are held by institutional investors. 1.3% of Equifax shares are held by company insiders. Comparatively, 1.0% of John Wiley & Sons shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Equifax and John Wiley & Sons’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Equifax $3.29 billion 3.59 $1.22 billion $4.72 20.82
John Wiley & Sons N/A N/A N/A $1.59 N/A

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

Volatility and Risk

Equifax has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, John Wiley & Sons has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Profitability

This table compares Equifax and John Wiley & Sons’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equifax 17.44% 24.88% 10.51%
John Wiley & Sons 5.32% 17.78% 6.34%

Summary

Equifax beats John Wiley & Sons on 12 of the 15 factors compared between the two stocks.

Equifax Company Profile

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.

John Wiley & Sons Company Profile

John Wiley & Sons, Inc. provides knowledge and knowledge-enabled services in the areas of research, professional practice and education. The Company operates through three segments: Research, Professional Development and Education. Through the Research segment, the Company provides digital and print scientific, technical, medical and scholarly journals, reference works, books, database services and advertising. The Professional Development segment provides digital and print books, corporate learning solutions, employment talent solutions and training services, and test prep and certification. In the Education segment, the Company provides print and digital content, and education solutions, including online program management services for higher education institutions and course management tools for instructors and students. The Company is engaged in developing and cross-marketing products to its customer base of researchers, professionals, students and educators.

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