S&P Global (SPGI) versus China Finance Online Co. Limited (JRJC) Critical Analysis

S&P Global (NYSE: SPGI) and China Finance Online Co. Limited (NASDAQ:JRJC) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Profitability

This table compares S&P Global and China Finance Online Co. Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
S&P Global 30.15% 187.30% 18.88%
China Finance Online Co. Limited -61.81% -43.68% -21.96%

Risk and Volatility

S&P Global has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, China Finance Online Co. Limited has a beta of 2.39, meaning that its share price is 139% more volatile than the S&P 500.

Insider and Institutional Ownership

86.2% of S&P Global shares are owned by institutional investors. Comparatively, 3.0% of China Finance Online Co. Limited shares are owned by institutional investors. 0.2% of S&P Global shares are owned by insiders. Comparatively, 30.4% of China Finance Online Co. Limited shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for S&P Global and China Finance Online Co. Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
S&P Global 0 4 6 0 2.60
China Finance Online Co. Limited 0 0 0 0 N/A

S&P Global currently has a consensus target price of $161.40, indicating a potential upside of 2.84%. Given S&P Global’s higher probable upside, research analysts plainly believe S&P Global is more favorable than China Finance Online Co. Limited.

Valuation and Earnings

This table compares S&P Global and China Finance Online Co. Limited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
S&P Global $5.66 billion 7.07 $2.11 billion $6.81 23.05
China Finance Online Co. Limited $83.06 million 0.61 -$1.67 million ($1.49) -1.43

S&P Global has higher revenue and earnings than China Finance Online Co. Limited. China Finance Online Co. Limited is trading at a lower price-to-earnings ratio than S&P Global, indicating that it is currently the more affordable of the two stocks.

Dividends

S&P Global pays an annual dividend of $1.64 per share and has a dividend yield of 1.0%. China Finance Online Co. Limited does not pay a dividend. S&P Global pays out 24.1% of its earnings in the form of a dividend.

Summary

S&P Global beats China Finance Online Co. Limited on 11 of the 14 factors compared between the two stocks.

S&P Global Company Profile

S&P Global Inc., formerly McGraw Hill Financial Inc., is a provider of ratings, benchmarks, analytics and data to the capital and commodity markets around the world. The Company operates through three segments: Ratings, which provides credit ratings, research and analytics to investors, issuers and other market participants; Market and Commodities Intelligence, which offers multi-asset-class data, research and analytical capabilities that integrate cross-asset analytics and desktop services, and deliver their customers in the commodity and energy markets access to information, data, analytic services and pricing and benchmarks, and S&P Dow Jones Indices (Indices), which is an index provider that maintains a range of valuation and index benchmarks for investment advisors, wealth managers and institutional investors. The Company’s subsidiary, CRISIL Limited (CRISIL), is a global analytical company and a provider of ratings, data and research, analytics and solutions.

China Finance Online Co. Limited Company Profile

China Finance Online Co. Limited is a Web-based financial services company in China. The Company provides Chinese retail investors with online access to securities and commodities trading services, wealth management products, securities investment advisory services, as well as financial database and analytics services to institutional customers. The Company operates through three segments: commodities brokerage services, online financial information and advisory service, and other related services in the People’s Republic of China (PRC), and Hong Kong brokerage services. The Company offers financial software, information services and securities investment advisory services to retail investors in China. Through its subsidiary, Shenzhen Genius Information Technology Co., Ltd., the Company provides financial database and analytics to institutional customers, including domestic financial, research, academic and regulatory institutions.

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