EXPERIAN PLC/ADR (OTCMKTS:EXPGY) and Continental (OTCMKTS:CTTAY) are both large-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.
This table compares EXPERIAN PLC/ADR and Continental’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
0.2% of EXPERIAN PLC/ADR shares are owned by institutional investors. Comparatively, 0.1% of Continental shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
EXPERIAN PLC/ADR has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Continental has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for EXPERIAN PLC/ADR and Continental, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings & Valuation
This table compares EXPERIAN PLC/ADR and Continental’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|EXPERIAN PLC/ADR||$4.86 billion||6.53||$695.00 million||$0.97||31.80|
|Continental||$52.44 billion||0.53||$3.42 billion||$1.71||8.15|
Continental has higher revenue and earnings than EXPERIAN PLC/ADR. Continental is trading at a lower price-to-earnings ratio than EXPERIAN PLC/ADR, indicating that it is currently the more affordable of the two stocks.
EXPERIAN PLC/ADR pays an annual dividend of $0.61 per share and has a dividend yield of 2.0%. Continental pays an annual dividend of $0.37 per share and has a dividend yield of 2.7%. EXPERIAN PLC/ADR pays out 62.9% of its earnings in the form of a dividend. Continental pays out 21.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Continental is clearly the better dividend stock, given its higher yield and lower payout ratio.
Continental beats EXPERIAN PLC/ADR on 9 of the 14 factors compared between the two stocks.
About EXPERIAN PLC/ADR
Experian plc, together with its subsidiaries, operates as an information services company. The company offers credit services, such as holding, protecting, and managing data that help businesses and organizations to lend, as well as prevent frauds. Its credit services also holds information of people and businesses that have repaid credit in the past; and provides credit reports used by various businesses, such as banks, automotive dealers, healthcare providers, and retailers. The company also provides software and analytics solutions that help clients in lending, as well as detecting and minimizing frauds, and complying with legal requirements. In addition, it offers marketing services, which include data management and analytics that enable businesses to plan, build, and deliver their marketing campaigns. Further, the company provides online financial education and debt resolution services that help people to understand and manage their financial position, while protecting themselves from fraud and identity theft. Additionally, it engages in the development of intellectual property; and provision of administrative services. Experian plc serves customers in financial service, direct-to-consumer, healthcare, retail, automotive, software and professional services, telecommunications and utility, insurance, media and technology, government and public, and other sectors in North America, Latin America, the United Kingdom, and Ireland, as well as rest of the Europe, the Middle East, Africa, and the Asia Pacific. The company was formerly known as Experian Group Limited and changed its name to Experian plc in July 2008. Experian plc was founded in 1803 and is headquartered in Dublin, Ireland.
Continental Aktiengesellschaft develops products, systems, and services for customers in various industries worldwide. The company operates through Chassis & Safety, Powertrain, Interior, Tires, and ContiTech segments. The Chassis & Safety segment develops, produces, and markets intelligent systems to enhance driving safety and vehicle dynamics. This segment offers advanced driver assistance systems, hydraulic brake systems, passive safety and sensoric products, and vehicle dynamics products. The Powertrain segment provides engine systems, fuel and exhaust management systems, hybrid electric vehicles, sensors and actuators, and transmission products. The Interior segment develops and produces information, communication, and network solutions and services for cars and commercial vehicles, such as body and security, commercial vehicle and aftermarket, infotainment and connectivity, and instrumentation and driver HMI systems. The Tires segment provides passenger and light truck equipment, commercial vehicle, and two-wheel tires for use in vehicle manufacture and replacement businesses. The ContiTech segment develops, manufactures, and markets functional parts, and intelligent components and systems made of rubber, plastic, metal, and fabric for the machine and plant engineering, mining, agriculture, automotive, and other industries. It offers air spring systems, industrial fluid solutions, mobile fluid systems, and vibration control products, as well as conveyor belts and power transmission products. Continental Aktiengesellschaft serves the automotive, railway engineering, machine and plant construction, and mining industries, as well as replacement sector. The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.
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