Broadridge Financial Solutions (NYSE:BR) and HealthEquity (NASDAQ:HQY) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.
Valuation and Earnings
This table compares Broadridge Financial Solutions and HealthEquity's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Broadridge Financial Solutions | $4.53 billion | 3.56 | $462.50 million | $5.03 | 27.67 |
HealthEquity | $531.99 million | 11.67 | $39.66 million | $1.38 | 54.77 |
Broadridge Financial Solutions has higher revenue and earnings than HealthEquity. Broadridge Financial Solutions is trading at a lower price-to-earnings ratio than HealthEquity, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Broadridge Financial Solutions has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, HealthEquity has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.
Insider & Institutional Ownership
85.0% of Broadridge Financial Solutions shares are held by institutional investors. Comparatively, 98.0% of HealthEquity shares are held by institutional investors. 2.0% of Broadridge Financial Solutions shares are held by company insiders. Comparatively, 3.7% of HealthEquity shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Broadridge Financial Solutions and HealthEquity's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Broadridge Financial Solutions | 10.27% | 48.98% | 13.16% |
HealthEquity | 0.44% | 7.65% | 3.49% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Broadridge Financial Solutions and HealthEquity, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Broadridge Financial Solutions | 0 | 3 | 3 | 0 | 2.50 |
HealthEquity | 0 | 4 | 8 | 1 | 2.77 |
Broadridge Financial Solutions presently has a consensus price target of $154.1667, indicating a potential upside of 10.95%. HealthEquity has a consensus price target of $75.2308, indicating a potential downside of 1.45%. Given Broadridge Financial Solutions' higher possible upside, equities analysts clearly believe Broadridge Financial Solutions is more favorable than HealthEquity.
Summary
HealthEquity beats Broadridge Financial Solutions on 8 of the 15 factors compared between the two stocks.