Euromoney Institutional Investor (LON:ERM) and Reach plc (RCH.L) (LON:RCH) are both small-cap consumer cyclical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.
Valuation & Earnings
This table compares Euromoney Institutional Investor and Reach plc (RCH.L)'s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Euromoney Institutional Investor | £335.26 million | 3.15 | N/A | GBX 28.80 | 33.54 |
Reach plc (RCH.L) | £640.70 million | 0.99 | N/A | GBX 14.30 | 14.20 |
Reach plc (RCH.L) is trading at a lower price-to-earnings ratio than Euromoney Institutional Investor, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations for Euromoney Institutional Investor and Reach plc (RCH.L), as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Euromoney Institutional Investor | 0 | 3 | 0 | 0 | 2.00 |
Reach plc (RCH.L) | 0 | 2 | 0 | 0 | 2.00 |
Euromoney Institutional Investor currently has a consensus target price of GBX 1,016.67, indicating a potential upside of 5.24%. Reach plc (RCH.L) has a consensus target price of GBX 167.50, indicating a potential downside of 17.49%. Given Euromoney Institutional Investor's higher possible upside, equities analysts clearly believe Euromoney Institutional Investor is more favorable than Reach plc (RCH.L).
Profitability
This table compares Euromoney Institutional Investor and Reach plc (RCH.L)'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Euromoney Institutional Investor | N/A | N/A | N/A |
Reach plc (RCH.L) | N/A | N/A | N/A |
Dividends
Euromoney Institutional Investor pays an annual dividend of GBX 0.22 per share and has a dividend yield of 0.0%. Reach plc (RCH.L) pays an annual dividend of GBX 0.02 per share and has a dividend yield of 0.0%. Euromoney Institutional Investor pays out 0.8% of its earnings in the form of a dividend. Reach plc (RCH.L) pays out 0.2% 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
Euromoney Institutional Investor beats Reach plc (RCH.L) on 5 of the 7 factors compared between the two stocks.