MSCI (NYSE: MSCI) and Dun & Bradstreet Corporation (The) (NYSE:DNB) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitabiliy, risk, earnings, dividends and institutional ownership.
Insider and Institutional Ownership
98.8% of MSCI shares are held by institutional investors. Comparatively, 92.2% of Dun & Bradstreet Corporation (The) shares are held by institutional investors. 2.3% of MSCI shares are held by insiders. Comparatively, 0.4% of Dun & Bradstreet Corporation (The) shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares MSCI and Dun & Bradstreet Corporation (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dun & Bradstreet Corporation (The)||4.85%||-25.59%||12.10%|
Risk and Volatility
MSCI has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Dun & Bradstreet Corporation (The) has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.
MSCI pays an annual dividend of $1.12 per share and has a dividend yield of 1.1%. Dun & Bradstreet Corporation (The) pays an annual dividend of $2.01 per share and has a dividend yield of 1.9%. MSCI pays out 38.6% of its earnings in the form of a dividend. Dun & Bradstreet Corporation (The) pays out 90.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MSCI has increased its dividend for 10 consecutive years and Dun & Bradstreet Corporation (The) has increased its dividend for 2 consecutive years.
Valuation and Earnings
This table compares MSCI and Dun & Bradstreet Corporation (The)’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MSCI||$1.17 billion||8.21||$587.00 million||$2.90||36.61|
|Dun & Bradstreet Corporation (The)||$1.71 billion||2.30||$435.90 million||$2.23||47.80|
MSCI has higher revenue, but lower earnings than Dun & Bradstreet Corporation (The). MSCI is trading at a lower price-to-earnings ratio than Dun & Bradstreet Corporation (The), indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for MSCI and Dun & Bradstreet Corporation (The), as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dun & Bradstreet Corporation (The)||1||2||0||0||1.67|
MSCI presently has a consensus price target of $91.75, indicating a potential downside of 13.58%. Dun & Bradstreet Corporation (The) has a consensus price target of $112.50, indicating a potential upside of 5.54%. Given Dun & Bradstreet Corporation (The)’s higher probable upside, analysts clearly believe Dun & Bradstreet Corporation (The) is more favorable than MSCI.
MSCI beats Dun & Bradstreet Corporation (The) on 12 of the 17 factors compared between the two stocks.
MSCI Company Profile
MSCI Inc. offers products and services to support the needs of institutional investors throughout their investment processes. Its segments include Index, Analytics and All Other segment. All Other segment comprises environmental, social and governance (ESG) and Real Estate segments. Its indexes are used in various areas of the investment process, including index-linked product creation and performance benchmarking, as well as portfolio construction and rebalancing, and asset allocation. The Analytics segment uses analytical content to create products and services, which offer institutional investors an integrated view of risk and return. MSCI’s ESG products include MSCI ESG Ratings, MSCI ESG Business Involvement Screening Research and MSCI ESG Governance Metrics. MSCI’s Real Estate products comprise private real estate benchmarks and indexes branded IPD Group Limited (IPD) and include Portfolio Analysis Service (PAS), IPD Rental Information Service (IRIS) and IPD Global Intel.
Dun & Bradstreet Corporation (The) Company Profile
The Dun & Bradstreet Corporation is the source of commercial data, analytics and insight on businesses. The Company operates through two segments: Americas, which consists of its operations in the United States and Canada, and Non-Americas, which consists of its operations in the United Kingdom, Greater China, India, and its European and Asia Pacific Worldwide Networks. The Company provides Risk Management Solutions and Sales and Marketing Solutions. The Company provides DNBi and D&B Credit that are subscription-based online applications, which offers customers real time access to its complete and up-to-date global information, monitoring and portfolio analysis. The Company provides D&B Optimizer solution, which transforms its customers’ prospects and data into up-to-date, actionable commercial insight, facilitating a single customer view across multiple systems and touch points, such as marketing and billing databases, and enables a customer to make sales and marketing decisions.
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