S&P Global (SPGI) vs. IHS (IHS) Financial Analysis
S&P Global (NYSE: SPGI) and IHS (NYSE:IHS) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
85.4% of S&P Global shares are owned by institutional investors. 0.2% of S&P Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for S&P Global and IHS, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
S&P Global currently has a consensus price target of $151.25, indicating a potential downside of 0.99%. IHS has a consensus price target of $44.67, indicating a potential downside of 61.90%. Given S&P Global’s stronger consensus rating and higher possible upside, research analysts plainly believe S&P Global is more favorable than IHS.
Valuation and Earnings
This table compares S&P Global and IHS’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|S&P Global||$5.80 billion||6.77||$2.66 billion||$8.56||17.85|
S&P Global has higher revenue and earnings than IHS. S&P Global is trading at a lower price-to-earnings ratio than IHS, indicating that it is currently the more affordable of the two stocks.
This table compares S&P Global and IHS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & 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, IHS has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.
S&P Global pays an annual dividend of $1.64 per share and has a dividend yield of 1.1%. IHS does not pay a dividend. S&P Global pays out 19.2% of its earnings in the form of a dividend.
S&P Global beats IHS on 12 of the 13 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.
IHS Company Profile
IHS Inc. develops source of information, insight and analytics in different areas of business. The Company’s segments include Resources, Transportation and Consolidated Markets & Solutions. The Company’s Resources segment includes its Energy and Chemicals product offerings. Its Transportation segment includes its Automotive; Maritime & Trade, and Aerospace, Defense & Security product offerings. Its Consolidated Markets & Solutions segment includes its Product Design; Technology, Media & Telecom, and Economics & Country Risk product offerings. It provides authoritative analysis and forecasts of sales and production for light vehicles, medium and heavy commercial vehicles, powertrain, components and technology systems across various markets. Its product design offerings include content and analysis on various engineering and technical standards, codes, reference books, journals, and other scientific and technical documents, as well as software-based engineering decision engines.
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