Houghton Mifflin Harcourt Learning Technology (NASDAQ: HMHC) and John Wiley & Sons (NYSE:JW.A) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.
Volatility & Risk
Houghton Mifflin Harcourt Learning Technology has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, John Wiley & Sons has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
John Wiley & Sons pays an annual dividend of $1.28 per share and has a dividend yield of 1.9%. Houghton Mifflin Harcourt Learning Technology does not pay a dividend. John Wiley & Sons pays out 42.7% of its earnings in the form of a dividend.
Institutional & Insider Ownership
74.5% of John Wiley & Sons shares are held by institutional investors. 1.1% of Houghton Mifflin Harcourt Learning Technology shares are held by company insiders. Comparatively, 1.0% of John Wiley & Sons shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Houghton Mifflin Harcourt Learning Technology and John Wiley & Sons’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Houghton Mifflin Harcourt Learning Technology||-7.34%||-18.00%||-5.33%|
|John Wiley & Sons||10.44%||18.07%||7.09%|
This is a summary of current ratings for Houghton Mifflin Harcourt Learning Technology and John Wiley & Sons, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Houghton Mifflin Harcourt Learning Technology||1||4||1||0||2.00|
|John Wiley & Sons||0||2||0||0||2.00|
Houghton Mifflin Harcourt Learning Technology currently has a consensus target price of $11.17, suggesting a potential upside of 46.93%. John Wiley & Sons has a consensus target price of $60.00, suggesting a potential downside of 10.45%. Given Houghton Mifflin Harcourt Learning Technology’s higher probable upside, equities analysts plainly believe Houghton Mifflin Harcourt Learning Technology is more favorable than John Wiley & Sons.
Valuation and Earnings
This table compares Houghton Mifflin Harcourt Learning Technology and John Wiley & Sons’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Houghton Mifflin Harcourt Learning Technology||$1.41 billion||0.67||-$103.18 million||($1.25)||-6.08|
|John Wiley & Sons||$1.72 billion||2.22||$113.64 million||$3.00||22.33|
John Wiley & Sons has higher revenue and earnings than Houghton Mifflin Harcourt Learning Technology. Houghton Mifflin Harcourt Learning Technology is trading at a lower price-to-earnings ratio than John Wiley & Sons, indicating that it is currently the more affordable of the two stocks.
John Wiley & Sons beats Houghton Mifflin Harcourt Learning Technology on 10 of the 14 factors compared between the two stocks.
Houghton Mifflin Harcourt Learning Technology Company Profile
Houghton Mifflin Harcourt Company, a learning company, provides content, services, and technology solutions for educational institutions and consumers worldwide. The company operates in two segments, Education and Trade Publishing. The Education segment provides educational products, technology platforms, and services, including print and digital content in the form of textbooks, digital courseware, instructional aids, educational assessment, and intervention solutions for students. The Trade Publishing segment primarily develops, markets, and sells consumer books in print and digital formats, as well as licenses book rights to other publishers and electronic businesses; and trade and reference materials, such as adult and children's fiction and non-fiction books to schools, colleges, libraries, office supply distributors, and other businesses. This segment distributes products through retail stores comprising physical and online, and wholesalers. The company was formerly known as HMH Holdings (Delaware), Inc. and changed its name to Houghton Mifflin Harcourt Company in October 2013. Houghton Mifflin Harcourt Company was founded in 1832 and is headquartered in Boston, Massachusetts.
John Wiley & Sons Company Profile
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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