London Stock Exchange Group plc (LSE.L) (LON:LSE) and Admiral Group (LON:ADM) are both financial services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.
Earnings and Valuation
This table compares London Stock Exchange Group plc (LSE.L) and Admiral Group's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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London Stock Exchange Group plc (LSE.L) | £2.41 billion | 14.18 | N/A | GBX 112.40 | 86.42 |
Admiral Group | £1.40 billion | 6.48 | N/A | GBX 167.80 | 18.25 |
Admiral Group is trading at a lower price-to-earnings ratio than London Stock Exchange Group plc (LSE.L), indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares London Stock Exchange Group plc (LSE.L) and Admiral Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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London Stock Exchange Group plc (LSE.L) | N/A | N/A | N/A |
Admiral Group | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of current ratings and price targets for London Stock Exchange Group plc (LSE.L) and Admiral Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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London Stock Exchange Group plc (LSE.L) | 0 | 3 | 7 | 0 | 2.70 |
Admiral Group | 2 | 8 | 1 | 0 | 1.91 |
London Stock Exchange Group plc (LSE.L) currently has a consensus price target of GBX 9,830, suggesting a potential upside of 1.19%. Admiral Group has a consensus price target of GBX 2,314.20, suggesting a potential downside of 24.45%. Given London Stock Exchange Group plc (LSE.L)'s stronger consensus rating and higher probable upside, equities analysts clearly believe London Stock Exchange Group plc (LSE.L) is more favorable than Admiral Group.
Dividends
London Stock Exchange Group plc (LSE.L) pays an annual dividend of GBX 73 per share and has a dividend yield of 0.8%. Admiral Group pays an annual dividend of GBX 0.98 per share and has a dividend yield of 0.0%. London Stock Exchange Group plc (LSE.L) pays out 64.9% of its earnings in the form of a dividend. Admiral Group pays out 0.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Summary
London Stock Exchange Group plc (LSE.L) beats Admiral Group on 7 of the 9 factors compared between the two stocks.