TransUnion (NYSE: TRU) and John Wiley & Sons (NYSE:JW.A) are both mid-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitabiliy, valuation and risk.
Insider and Institutional Ownership
74.6% of John Wiley & Sons shares are held by institutional investors. 2.1% of TransUnion shares are held by insiders. Comparatively, 7.5% of John Wiley & Sons shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of recent recommendations and price targets for TransUnion and John Wiley & Sons, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|John Wiley & Sons||0||1||1||0||2.50|
TransUnion currently has a consensus target price of $46.14, indicating a potential downside of 0.06%. John Wiley & Sons has a consensus target price of $54.00, indicating a potential upside of Infinity. Given John Wiley & Sons’ higher possible upside, analysts clearly believe John Wiley & Sons is more favorable than TransUnion.
This table compares TransUnion and John Wiley & Sons’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|John Wiley & Sons||6.61%||17.39%||6.17%|
Earnings and Valuation
This table compares TransUnion and John Wiley & Sons’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TransUnion||$1.80 billion||4.67||$636.70 million||$1.16||39.80|
|John Wiley & Sons||N/A||N/A||N/A||$1.96||N/A|
TransUnion has higher revenue and earnings than John Wiley & Sons. John Wiley & Sons is trading at a lower price-to-earnings ratio than TransUnion, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
TransUnion has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, John Wiley & Sons has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.
John Wiley & Sons pays an annual dividend of $1.28 per share. TransUnion does not pay a dividend. John Wiley & Sons pays out 65.3% of its earnings in the form of a dividend.
TransUnion beats John Wiley & Sons on 8 of the 13 factors compared between the two stocks.
TransUnion is a risk and information solutions provider to businesses and consumers. The Company provides consumer reports, risk scores, analytical services and decision capabilities to businesses. The Company operates through three segments: U.S. Information Services (USIS), International and Consumer Interactive. The USIS segment provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. The International segment provides services similar to its USIS segment to businesses in select regions outside the United States. The Consumer Interactive segment offers solutions that help consumers manage their personal finances and take precautions against identity theft. Businesses uses its solutions for their process workflows to assess consumer ability to pay for services, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud.
About John Wiley & Sons
John Wiley & Sons, Inc. provides knowledge and knowledge-enabled services in the areas of research, professional practice and education. The Company operates through three segments: Research, Professional Development and Education. Through the Research segment, the Company provides digital and print scientific, technical, medical and scholarly journals, reference works, books, database services and advertising. The Professional Development segment provides digital and print books, corporate learning solutions, employment talent solutions and training services, and test prep and certification. In the Education segment, the Company provides print and digital content, and education solutions, including online program management services for higher education institutions and course management tools for instructors and students. The Company is engaged in developing and cross-marketing products to its customer base of researchers, professionals, students and educators.
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