McGraw Hill Financial (NASDAQ: MHFI) and RMG Networks Holding Corporation (NASDAQ:RMGN) are both services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for McGraw Hill Financial and RMG Networks Holding Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
McGraw Hill Financial 0 0 0 0 N/A
RMG Networks Holding Corporation 0 0 1 0 3.00

RMG Networks Holding Corporation has a consensus price target of $4.00, suggesting a potential upside of 110.53%. Given RMG Networks Holding Corporation’s higher possible upside, analysts plainly believe RMG Networks Holding Corporation is more favorable than McGraw Hill Financial.

Profitability

This table compares McGraw Hill Financial and RMG Networks Holding Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
McGraw Hill Financial N/A N/A N/A
RMG Networks Holding Corporation -11.30% -50.92% -17.77%

Insider & Institutional Ownership

9.5% of RMG Networks Holding Corporation shares are owned by institutional investors. 24.5% of RMG Networks Holding Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares McGraw Hill Financial and RMG Networks Holding Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
McGraw Hill Financial N/A N/A N/A N/A N/A
RMG Networks Holding Corporation $38.28 million 2.21 -$819,999.00 N/A N/A

McGraw Hill Financial has higher revenue, but lower earnings than RMG Networks Holding Corporation.

Summary

RMG Networks Holding Corporation beats McGraw Hill Financial on 5 of the 8 factors compared between the two stocks.

About McGraw Hill Financial

McGraw Hill Financial, Inc. is a benchmarks and ratings, analytics, data and research provider serving the global capital, commodities and commercial markets. The Company operate in four business segments: S&P Ratings, which provides credit ratings, research and analytics, offering investors and market participants information, ratings and benchmarks; S&P Capital IQ, which provides multi-asset-class data, research and analytical capabilities, which integrate cross-asset analytics and desktop services; S&P Dow Jones Indices, which is a global index provider that maintains a range of valuation and index benchmarks for investment advisors, wealth managers and institutional investors, and Commodities & Commercial, which consists of business-to-business companies focused on commercial and commodities markets that deliver their customers access to information, data, analytic services, and pricing and quality benchmarks.

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