Broadridge Financial Solutions (NYSE: BR) is one of 27 public companies in the “Professional Information Services” industry, but how does it contrast to its competitors? We will compare Broadridge Financial Solutions to similar businesses based on the strength of its dividends, analyst recommendations, risk, profitability, earnings, institutional ownership and valuation.

Institutional and Insider Ownership

84.3% of Broadridge Financial Solutions shares are owned by institutional investors. Comparatively, 58.7% of shares of all “Professional Information Services” companies are owned by institutional investors. 3.5% of Broadridge Financial Solutions shares are owned by company insiders. Comparatively, 12.2% of shares of all “Professional Information Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Broadridge Financial Solutions and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadridge Financial Solutions 0 3 0 0 2.00
Broadridge Financial Solutions Competitors 139 620 715 13 2.40

Broadridge Financial Solutions presently has a consensus price target of $74.00, indicating a potential downside of 6.52%. As a group, “Professional Information Services” companies have a potential upside of 2.12%. Given Broadridge Financial Solutions’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Broadridge Financial Solutions has less favorable growth aspects than its competitors.

Profitability

This table compares Broadridge Financial Solutions and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Broadridge Financial Solutions 7.89% 37.99% 12.30%
Broadridge Financial Solutions Competitors 7.26% 27.29% 5.05%

Dividends

Broadridge Financial Solutions pays an annual dividend of $1.46 per share and has a dividend yield of 1.8%. Broadridge Financial Solutions pays out 53.5% of its earnings in the form of a dividend. As a group, “Professional Information Services” companies pay a dividend yield of 1.6% and pay out 30.0% of their earnings in the form of a dividend. Broadridge Financial Solutions has increased its dividend for 9 consecutive years.

Valuation and Earnings

This table compares Broadridge Financial Solutions and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Broadridge Financial Solutions $4.14 billion $704.70 million 29.00
Broadridge Financial Solutions Competitors $3.19 billion $932.62 million 16.07

Broadridge Financial Solutions has higher revenue, but lower earnings than its competitors. Broadridge Financial Solutions is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Broadridge Financial Solutions has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Broadridge Financial Solutions’ competitors have a beta of 0.99, indicating that their average share price is 1% less volatile than the S&P 500.

Summary

Broadridge Financial Solutions competitors beat Broadridge Financial Solutions on 8 of the 15 factors compared.

About Broadridge Financial Solutions

Broadridge Financial Solutions, Inc. (Broadridge) is a provider of investor communications and technology-driven solutions to banks, broker-dealers, mutual funds and corporate issuers. The Company’s segments include Investor Communication Solutions, and Global Technology and Operations. The Company offers Bank/Broker-Dealer Investor Communication Solutions, Customer Communication Solutions, Corporate Issuer Solutions, Advisor Solutions and Mutual Fund and Retirement Solutions through Investor Communication Solutions segment. The Company offers a middle- and back-office securities processing platform for North American and global broker-dealers. Its services include investor and customer communications, securities processing, and data and analytics solutions. The Company delivers a range of solutions that helps its clients serve their retail and institutional customers across the entire investment lifecycle, including pre-trade, trade, and post-trade processing functionality.

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