Nielsen (NYSE:NLSN) and CAPITA GRP/ADR (OTCMKTS:CTAGY) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.
Volatility & Risk
Nielsen has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, CAPITA GRP/ADR has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.
Earnings and Valuation
This table compares Nielsen and CAPITA GRP/ADR’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nielsen||$6.52 billion||1.09||-$712.00 million||$1.73||11.53|
|CAPITA GRP/ADR||$5.23 billion||N/A||$359.06 million||$0.86||9.29|
CAPITA GRP/ADR has lower revenue, but higher earnings than Nielsen. CAPITA GRP/ADR is trading at a lower price-to-earnings ratio than Nielsen, indicating that it is currently the more affordable of the two stocks.
This table compares Nielsen and CAPITA GRP/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
94.3% of Nielsen shares are held by institutional investors. 0.3% of Nielsen shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent ratings and target prices for Nielsen and CAPITA GRP/ADR, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nielsen presently has a consensus target price of $25.80, suggesting a potential upside of 29.32%. Given Nielsen’s higher probable upside, equities research analysts clearly believe Nielsen is more favorable than CAPITA GRP/ADR.
Nielsen beats CAPITA GRP/ADR on 10 of the 12 factors compared between the two stocks.
Nielsen Holdings plc, together with its subsidiaries, operates as a measurement and data analytics company. It operates in two segments, Buy and Watch. The Buy segment provides retail transactional measurement data, consumer behavior information, and analytics primarily to businesses in the consumer packaged goods industry. This segment offers data on retail measurement services, such as market share, competitive sales volumes, and insights into activities, such as distribution, pricing, merchandising, and promotion; consumer panel measurement, which offers insight into shopper behavior comprising trial and repeat purchase for new products, brand or retailer loyalty, and customer segmentation; and consumer intelligence and analytical services that help clients in taking business decisions in product development and marketing cycles. The Watch segment provides viewership and listening data, and analytics principally to the media and advertising industries covering television, radio, print, online, digital, mobile viewing, and listening platforms. This segment offers television audience measurement services; audio audience measurement services; digital audience measurement services, such as digital media and market research, audience analytics, and social media measurement; mobile measurement services comprising measurement and consumer research for telecom and media companies; and total audience measurement services. Nielsen Holdings plc provides media and marketing information, analytics, and manufacturer and retailer expertise about what and where consumers buy, read, watch, and listen. The company was formerly known as Nielsen N.V. and changed its name to Nielsen Holdings plc in August 2015. Nielsen Holdings plc was founded in 1923 and is headquartered in New York, New York.
About CAPITA GRP/ADR
Capita plc provides customer management, administration, and professional support services to clients in the private and public sectors. The company offers automation, business transformation, customer management, data and analytics, digital transformation, government, IT and networks, people, and software solutions and services, as well as specialist services, such as intelligent communications, financial, legal, travel and event, start-up development, property and infrastructure, procurement, and translation and interpreting, and workplace technology services. Capita plc provides its services to banking and financial services, insurance, life and pensions, retail, telecoms and media, transport, utilities, central and local government, defense, education, emergency services, health, police and justice, and science sectors. The company operates in the United Kingdom, Ireland, Northern Europe, the United States, India, South Africa, and Dubai. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is headquartered in London, the United Kingdom.
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