Grubhub (NYSE:GRUB) and Broadridge Financial Solutions (NYSE:BR) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.
Profitability
This table compares Grubhub and Broadridge Financial Solutions' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Grubhub | -6.99% | -4.44% | -2.66% |
Broadridge Financial Solutions | 10.27% | 48.98% | 13.16% |
Valuation & Earnings
This table compares Grubhub and Broadridge Financial Solutions' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Grubhub | $1.31 billion | 4.51 | $-18,570,000.00 | $0.16 | 398.63 |
Broadridge Financial Solutions | $4.53 billion | 3.67 | $462.50 million | $5.03 | 28.53 |
Broadridge Financial Solutions has higher revenue and earnings than Grubhub. Broadridge Financial Solutions is trading at a lower price-to-earnings ratio than Grubhub, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
98.6% of Grubhub shares are owned by institutional investors. Comparatively, 85.0% of Broadridge Financial Solutions shares are owned by institutional investors. 1.9% of Grubhub shares are owned by insiders. Comparatively, 2.0% of Broadridge Financial Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Grubhub has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Broadridge Financial Solutions has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Grubhub and Broadridge Financial Solutions, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Grubhub | 2 | 18 | 2 | 0 | 2.00 |
Broadridge Financial Solutions | 0 | 3 | 3 | 0 | 2.50 |
Grubhub presently has a consensus target price of $56.9412, indicating a potential downside of 11.15%. Broadridge Financial Solutions has a consensus target price of $154.1667, indicating a potential upside of 7.07%. Given Broadridge Financial Solutions' stronger consensus rating and higher possible upside, analysts plainly believe Broadridge Financial Solutions is more favorable than Grubhub.
Summary
Broadridge Financial Solutions beats Grubhub on 11 of the 14 factors compared between the two stocks.