Comparing TransUnion (TRU) and Dun & Bradstreet (DNB)

TransUnion (NYSE: TRU) and Dun & Bradstreet (NYSE:DNB) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Earnings and Valuation

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This table compares TransUnion and Dun & Bradstreet’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TransUnion $1.93 billion 5.68 $441.20 million $1.71 34.99
Dun & Bradstreet $1.74 billion 2.49 $140.90 million $7.36 15.93

TransUnion has higher revenue and earnings than Dun & Bradstreet. Dun & Bradstreet 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 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Dun & Bradstreet has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Profitability

This table compares TransUnion and Dun & Bradstreet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TransUnion 22.81% 20.73% 6.71%
Dun & Bradstreet 8.09% -30.74% 11.75%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TransUnion and Dun & Bradstreet, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransUnion 0 1 10 0 2.91
Dun & Bradstreet 0 3 2 0 2.40

TransUnion presently has a consensus target price of $60.00, indicating a potential upside of 0.27%. Dun & Bradstreet has a consensus target price of $129.00, indicating a potential upside of 10.00%. Given Dun & Bradstreet’s higher probable upside, analysts plainly believe Dun & Bradstreet is more favorable than TransUnion.

Dividends

Dun & Bradstreet pays an annual dividend of $2.09 per share and has a dividend yield of 1.8%. TransUnion does not pay a dividend. Dun & Bradstreet pays out 28.4% of its earnings in the form of a dividend. Dun & Bradstreet has increased its dividend for 11 consecutive years.

Insider and Institutional Ownership

91.5% of Dun & Bradstreet shares are held by institutional investors. 1.2% of TransUnion shares are held by company insiders. Comparatively, 0.3% of Dun & Bradstreet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

TransUnion beats Dun & Bradstreet on 10 of the 17 factors compared between the two stocks.

About TransUnion

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 Dun & Bradstreet

The Dun & Bradstreet Corporation provides commercial data, analytics, and insight on businesses. The company operates through two segments, Americas and Non-Americas. It offers risk management solutions comprising trade credit solutions, such as The D&B Credit Suite, which includes D&B Credit and DNBi, subscription-based online applications that offer customers real time access to information, comprehensive monitoring, and portfolio analysis; various business information reports; and D&B Credibility solutions primarily for small businesses; Supplier Risk Manager, an online application that helps businesses mitigate supply chain risk; Compliance product suite that includes D&B Onboard and D&B Compliance Check, which helps customers comply with anti-money laundering and anti-bribery and corruption regulations through onboarding, screening, and monitoring of customers and third parties; and D&B Direct, an API that enables data integration inside enterprise applications, such as ERP, and enables master data management and toolkit. The company also offers sales acceleration solutions that enable B2B sales and marketing professionals to accelerate sales, enhance go-to-market activity, engage in a meaningful way, and close business faster; MDR Integrated Education Marketing, a source for education data services, sales tools, digital marketing solutions, and market research. In addition, it offers marketing solutions, such as Optimizer, a master data solution; D&B Master Data that empowers customers to understand business relationships; D&B Audience Targeting, which helps customers serve the right ads to the right audiences; and D&B Visitor Intelligence that helps B2B marketers unmask anonymous Web traffic in real-time. It serves customers in communication, technology, government, strategic financial services, retail, telecommunications, and manufacturing. The Dun & Bradstreet Corporation was founded in 1841 and is headquartered in Short Hills, New Jersey.

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