RELX Group (NYSE: RELX) and Wolters Kluwer (OTCMKTS:WTKWY) are both large-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.
This is a summary of recent recommendations and price targets for RELX Group and Wolters Kluwer, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
RELX Group pays an annual dividend of $0.54 per share and has a dividend yield of 2.4%. Wolters Kluwer pays an annual dividend of $1.35 per share and has a dividend yield of 2.5%. RELX Group pays out 52.4% of its earnings in the form of a dividend. Wolters Kluwer pays out 51.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RELX Group has raised its dividend for 2 consecutive years. Wolters Kluwer is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares RELX Group and Wolters Kluwer’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RELX Group||$9.48 billion||2.48||$2.14 billion||$1.03||21.68|
|Wolters Kluwer||$5.00 billion||3.20||$757.30 million||$2.62||21.01|
RELX Group has higher revenue and earnings than Wolters Kluwer. Wolters Kluwer is trading at a lower price-to-earnings ratio than RELX Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
RELX Group has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Wolters Kluwer has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
This table compares RELX Group and Wolters Kluwer’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
2.7% of RELX Group shares are owned by institutional investors. Comparatively, 0.1% of Wolters Kluwer shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
RELX Group beats Wolters Kluwer on 6 of the 11 factors compared between the two stocks.
RELX Group Company Profile
RELX PLC provides information and analytics for professional and business customers in the United States and internationally. It operates through four segments: Scientific, Technical & Medical; Risk & Business Analytics; Legal; and Exhibitions. The Scientific, Technical & Medical segment provides information and analytics to institutions and professionals. The Risk & Business Analytics segment offers solutions and decision tools that combine public and industry-specific content with technology and analytics to evaluate and predict risk, as well as enhance operational efficiency. The Legal segment provides legal, regulatory, and business information and analytics. The Exhibitions segment is involved in the events business. The company was formerly known as Reed Elsevier PLC and changed its name to RELX PLC in June 2015. RELX PLC was founded in 1894 and is headquartered in London, the United Kingdom.
Wolters Kluwer Company Profile
Wolters Kluwer N.V., together with its subsidiaries, provides information, software, and services in Europe, North America, the Asia Pacific, and internationally. The company operates through four divisions: Health; Tax & Accounting; Governance, Risk & Compliance; and Legal & Regulatory. The Health division offers solutions in the areas of clinical decision support, clinical drug information, patient engagement, clinical terminologies, clinical surveillance, nursing education and practice, medical research, and continuing education services; and medical, nursing, and allied health journal and book publishing solutions to healthcare professionals, medical librarians, and corporate researchers. The Tax & Accounting division provides solutions in the areas of compliance, collaboration, internal and external audit management, and firm management to accounting firms; corporate finance, tax, and auditing departments; government agencies; corporations; libraries; and universities. The Governance, Risk & Compliance division offers solutions, such as legal compliance and enterprise-wide legal management, as well as addresses regulatory and industry requirements through workflow, analytics, and reporting solutions and services in financial markets. This division serves corporations and small business owners in various industries; banks; and securities and insurance firms. The Legal & Regulatory division provides information, analytics, software, and integrated workflow solutions to law firms, corporate legal departments, corporations, universities, and government agencies. Wolters Kluwer N.V. was founded in 1836 and is headquartered in Alphen aan den Rijn, the Netherlands.
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