Broadridge Financial Solutions (NYSE: BR) and CoreLogic (NYSE:CLGX) are both mid-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Broadridge Financial Solutions and CoreLogic, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadridge Financial Solutions 0 2 0 0 2.00
CoreLogic 1 3 3 0 2.29

Broadridge Financial Solutions currently has a consensus target price of $74.00, suggesting a potential downside of 13.59%. CoreLogic has a consensus target price of $45.86, suggesting a potential downside of 2.24%. Given CoreLogic’s stronger consensus rating and higher possible upside, analysts plainly believe CoreLogic is more favorable than Broadridge Financial Solutions.

Insider and Institutional Ownership

83.0% of Broadridge Financial Solutions shares are held by institutional investors. Comparatively, 88.2% of CoreLogic shares are held by institutional investors. 2.6% of Broadridge Financial Solutions shares are held by insiders. Comparatively, 1.2% of CoreLogic shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Broadridge Financial Solutions $4.14 billion 2.41 $704.70 million $2.73 31.37
CoreLogic $1.91 billion 2.07 $404.81 million $1.06 44.26

Broadridge Financial Solutions has higher revenue and earnings than CoreLogic. Broadridge Financial Solutions is trading at a lower price-to-earnings ratio than CoreLogic, indicating that it is currently the more affordable of the two stocks.

Dividends

Broadridge Financial Solutions pays an annual dividend of $1.46 per share and has a dividend yield of 1.7%. CoreLogic does not pay a dividend. Broadridge Financial Solutions pays out 53.5% of its earnings in the form of a dividend. CoreLogic has increased its dividend for 9 consecutive years.

Volatility and Risk

Broadridge Financial Solutions has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, CoreLogic has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares Broadridge Financial Solutions and CoreLogic’s 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%
CoreLogic 4.86% 17.10% 4.37%

Summary

Broadridge Financial Solutions beats CoreLogic on 11 of the 17 factors compared between the two stocks.

Broadridge Financial Solutions Company Profile

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.

CoreLogic Company Profile

CoreLogic, Inc. is a provider of property information, analytics and data-enabled services. The Company provides detailed coverage of property, mortgages and other encumbrances, property risk and replacement cost, consumer credit, tenancy, location, hazard risk and related performance information. Its segments include Property Intelligence (PI), Risk Management and Work Flow (RMW), and Corporate. The Property Intelligence segment owns or licenses real property, mortgage and consumer information, which includes loan information, property sales and characteristic information, property risk and replacement cost, natural hazard data, geospatial data, parcel maps and mortgage-backed securities information. The RMW segment owns or licenses real property information, mortgage information and consumer information, which includes loan information, property sales and characteristic information, natural hazard data, parcel maps, employment verification, criminal records and eviction records.

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