IHS Markit (NASDAQ: INFO) and 58.com (NYSE:WUBA) are both large-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for IHS Markit and 58.com, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IHS Markit 1 3 10 0 2.64
58.com 1 1 4 0 2.50

IHS Markit presently has a consensus price target of $53.92, suggesting a potential upside of 6.98%. 58.com has a consensus price target of $72.40, suggesting a potential downside of 10.99%. Given IHS Markit’s stronger consensus rating and higher possible upside, research analysts clearly believe IHS Markit is more favorable than 58.com.

Earnings and Valuation

This table compares IHS Markit and 58.com’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IHS Markit $3.60 billion 5.48 $416.90 million $1.68 30.00
58.com $1.54 billion 7.73 $211.89 million $1.33 61.16

IHS Markit has higher revenue and earnings than 58.com. IHS Markit is trading at a lower price-to-earnings ratio than 58.com, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares IHS Markit and 58.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IHS Markit 16.06% 9.33% 5.12%
58.com 13.92% 7.54% 5.18%

Risk & Volatility

IHS Markit has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, 58.com has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500.

Institutional & Insider Ownership

96.5% of IHS Markit shares are owned by institutional investors. Comparatively, 54.0% of 58.com shares are owned by institutional investors. 2.7% of IHS Markit shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

IHS Markit beats 58.com on 10 of the 14 factors compared between the two stocks.

IHS Markit Company Profile

IHS Markit Ltd. provides critical information, analytics, and solutions for various industries and markets that drive economies worldwide. The company's information, analytics, and solutions enhance operational efficiency and offer deep insights for customers in business, finance, and government. Its Resources segment provides upstream, midstream, downstream, and power/gas/coal/renewables services. This segment also offers data for manufacturing processes, as well as capital expenditure, cost, price, production, trade, demand, and capacity industry analysis and forecasts. The company's Transportation segment provides authoritative analysis, as well as sales and production forecasts for light vehicles, medium and heavy commercial vehicles, powertrains, components, and technology systems; and performance measurement tools and marketing solutions for car makers, dealers, and agencies. It also offers comprehensive data on ships, as well as monthly import and export statistics on approximately 90 countries; and specifications for military vehicles, naval vessels, and aircraft types. The company's Consolidated Markets & Solutions segment provides content and analytics on engineering and technical standards, codes, specifications, handbooks, reference books, journals, and other scientific and technical documents, as well as software-based engineering decision engines; components and devices, performance analytics, and end market intelligence for technology, media, and telecom industries; and economic and risk data, forecast, and analytic tools. Its Financial Services segment provides pricing and reference data, indices, valuation and trading services, trade processing, enterprise software, and managed services to traders, portfolio managers, risk managers, research professionals, and other financial markets participants, as well as operations, compliance, and enterprise data managers. IHS Markit Ltd. was founded in 1959 and is headquartered in London, the United Kingdom.

58.com Company Profile

58.com Inc. operates online classifieds and listing platforms that enable local merchants and consumers to connect, share information, and conduct business in China. It primarily operates online multi-content category-classified advertising platforms under the 58 and Ganji names; and Anjuke, an online real estate listing platform. The company's platform contains local information of approximately 500 cities or towns in various content categories, including jobs, real estate, used goods, automotive, and yellow pages. It offers membership services, such as merchant certification and listing benefits, as well as display of online storefronts; and online marketing services comprising listing services, such as real-time bidding and priority listing, as well as marketing services through collaboration with third party Internet companies. 58.com Inc. was founded in 2005 and is headquartered in Beijing, the People's Republic of China.

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