Analyzing John Wiley & Sons (JW.A) & Its Rivals

John Wiley & Sons (NYSE: JW.A) is one of 22 public companies in the “Professional Information Services” industry, but how does it contrast to its competitors? We will compare John Wiley & Sons to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, earnings, profitability and analyst recommendations.

Insider and Institutional Ownership

72.2% of John Wiley & Sons shares are held by institutional investors. Comparatively, 57.6% of shares of all “Professional Information Services” companies are held by institutional investors. 1.0% of John Wiley & Sons shares are held by company insiders. Comparatively, 12.2% of shares of all “Professional Information Services” companies are held by company 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.

Analyst Recommendations

This is a breakdown of recent ratings for John Wiley & Sons and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
John Wiley & Sons 0 2 0 0 2.00
John Wiley & Sons Competitors 76 543 717 6 2.49

John Wiley & Sons currently has a consensus price target of $58.00, indicating a potential downside of 4.21%. As a group, “Professional Information Services” companies have a potential downside of 1.63%. Given John Wiley & Sons’ competitors stronger consensus rating and higher possible upside, analysts plainly believe John Wiley & Sons has less favorable growth aspects than its competitors.

Profitability

This table compares John Wiley & Sons and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
John Wiley & Sons 5.32% 17.78% 6.34%
John Wiley & Sons Competitors 4.01% 17.96% 4.01%

Volatility and Risk

John Wiley & Sons has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, John Wiley & Sons’ competitors have a beta of 1.02, suggesting that their average stock price is 2% more volatile than the S&P 500.

Dividends

John Wiley & Sons pays an annual dividend of $1.28 per share and has a dividend yield of 2.1%. John Wiley & Sons pays out 80.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Professional Information Services” companies pay a dividend yield of 1.5% and pay out 38.4% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares John Wiley & Sons and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
John Wiley & Sons $1.72 billion $113.64 million 38.08
John Wiley & Sons Competitors $3.13 billion $588.72 million 1,455.86

John Wiley & Sons’ competitors have higher revenue and earnings than John Wiley & Sons. John Wiley & Sons is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

John Wiley & Sons competitors beat John Wiley & Sons on 10 of the 15 factors compared.

About John Wiley & Sons

John Wiley & Sons, Inc. provides knowledge and knowledge-enabled services in the areas of research, professional practice and education. The Company operates through three segments: Research, Professional Development and Education. Through the Research segment, the Company provides digital and print scientific, technical, medical and scholarly journals, reference works, books, database services and advertising. The Professional Development segment provides digital and print books, corporate learning solutions, employment talent solutions and training services, and test prep and certification. In the Education segment, the Company provides print and digital content, and education solutions, including online program management services for higher education institutions and course management tools for instructors and students. The Company is engaged in developing and cross-marketing products to its customer base of researchers, professionals, students and educators.

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