Critical Analysis: Equifax (EFX) and CoreLogic (CLGX)
Equifax (NYSE: EFX) and CoreLogic (NYSE:CLGX) are both mid-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Volatility and Risk
Equifax has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, CoreLogic has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Equifax and CoreLogic, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Equifax currently has a consensus target price of $128.93, indicating a potential upside of 7.69%. CoreLogic has a consensus target price of $48.00, indicating a potential upside of 2.04%. Given Equifax’s stronger consensus rating and higher probable upside, research analysts plainly believe Equifax is more favorable than CoreLogic.
Equifax pays an annual dividend of $1.56 per share and has a dividend yield of 1.3%. CoreLogic does not pay a dividend. Equifax pays out 35.3% of its earnings in the form of a dividend. Equifax has increased its dividend for 5 consecutive years.
Insider and Institutional Ownership
95.2% of Equifax shares are held by institutional investors. Comparatively, 88.8% of CoreLogic shares are held by institutional investors. 1.3% of Equifax shares are held by insiders. Comparatively, 1.2% of CoreLogic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Equifax and CoreLogic’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Equifax||$3.14 billion||4.57||$488.80 million||$4.42||27.09|
|CoreLogic||$1.95 billion||1.98||$106.55 million||$1.06||44.38|
Equifax has higher revenue and earnings than CoreLogic. Equifax is trading at a lower price-to-earnings ratio than CoreLogic, indicating that it is currently the more affordable of the two stocks.
This table compares Equifax and CoreLogic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Equifax beats CoreLogic on 14 of the 17 factors compared between the two stocks.
Equifax Inc. is a global provider of information solutions and human resources business process outsourcing services for businesses, governments and consumers. The Company operates in four segments: U.S. Information Solutions (USIS), International, Workforce Solutions and Global Consumer Solutions. Its products and services are based on databases of consumer and business information derived from various sources, including credit, financial assets, telecommunications and utility payments, employment, income, demographic and marketing data. It uses statistical techniques and software tools to analyze all available data, creating customized insights, decision-making solutions and processing services for its clients. It helps consumers understand, manage and protect their personal information and make more informed financial decisions. The Company also provides information, technology and services to support debt collections and recovery management.
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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