FactSet Research Systems (NYSE:FDS) and TripAdvisor (NASDAQ:TRIP) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.
Earnings & Valuation
This table compares FactSet Research Systems and TripAdvisor's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
FactSet Research Systems | $1.49 billion | 8.14 | $372.94 million | $10.87 | 29.46 |
TripAdvisor | $1.56 billion | 2.86 | $126 million | $1.08 | 30.73 |
FactSet Research Systems has higher earnings, but lower revenue than TripAdvisor. FactSet Research Systems is trading at a lower price-to-earnings ratio than TripAdvisor, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
90.0% of FactSet Research Systems shares are held by institutional investors. Comparatively, 69.5% of TripAdvisor shares are held by institutional investors. 0.7% of FactSet Research Systems shares are held by company insiders. Comparatively, 3.5% of TripAdvisor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares FactSet Research Systems and TripAdvisor's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
FactSet Research Systems | 25.08% | 51.42% | 21.70% |
TripAdvisor | -24.54% | -15.76% | -7.30% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for FactSet Research Systems and TripAdvisor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
FactSet Research Systems | 5 | 7 | 0 | 0 | 1.58 |
TripAdvisor | 1 | 14 | 5 | 0 | 2.20 |
FactSet Research Systems presently has a consensus price target of $291.20, suggesting a potential downside of 9.07%. TripAdvisor has a consensus price target of $25.9474, suggesting a potential downside of 21.82%. Given FactSet Research Systems' higher possible upside, equities analysts plainly believe FactSet Research Systems is more favorable than TripAdvisor.
Risk & Volatility
FactSet Research Systems has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, TripAdvisor has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.
Summary
FactSet Research Systems beats TripAdvisor on 9 of the 14 factors compared between the two stocks.