FactSet Research Systems (NYSE:FDS) and Qutoutiao (NASDAQ:QTT) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.
Insider and Institutional Ownership
94.0% of FactSet Research Systems shares are owned by institutional investors. Comparatively, 0.4% of Qutoutiao shares are owned by institutional investors. 2.3% of FactSet Research Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
FactSet Research Systems pays an annual dividend of $2.88 per share and has a dividend yield of 1.0%. Qutoutiao does not pay a dividend. FactSet Research Systems pays out 33.8% of its earnings in the form of a dividend. FactSet Research Systems has increased its dividend for 13 consecutive years.
Earnings & Valuation
This table compares FactSet Research Systems and Qutoutiao’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FactSet Research Systems||$1.35 billion||8.01||$267.08 million||$8.53||33.15|
|Qutoutiao||$43.70 million||30.21||-$282.54 million||($2.10)||-2.22|
FactSet Research Systems has higher revenue and earnings than Qutoutiao. Qutoutiao is trading at a lower price-to-earnings ratio than FactSet Research Systems, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for FactSet Research Systems and Qutoutiao, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|FactSet Research Systems||3||9||0||0||1.75|
FactSet Research Systems currently has a consensus price target of $251.75, suggesting a potential downside of 10.97%. Qutoutiao has a consensus price target of $12.25, suggesting a potential upside of 162.88%. Given Qutoutiao’s stronger consensus rating and higher probable upside, analysts clearly believe Qutoutiao is more favorable than FactSet Research Systems.
This table compares FactSet Research Systems and Qutoutiao’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|FactSet Research Systems||23.30%||64.19%||25.85%|
FactSet Research Systems beats Qutoutiao on 11 of the 16 factors compared between the two stocks.
About FactSet Research Systems
FactSet Research Systems Inc. provides integrated financial information and analytical applications to the investment community in the United States, Europe, and the Asia Pacific. The company delivers insight and information to financial investment professionals through its analytics, services, contents, and technologies. Its applications suite offers tools and resources, including company and industry analyses, full screening tools, portfolio analysis, risk profiles, alpha-testing, portfolio optimization, and research management solutions. The company enables its clients to streamline real-time data and historical information comprising quotes, estimates, news, and commentary, as well as provides proprietary and third-party content through desktop, Web, mobile, and off-platform solutions. It serves portfolio managers, investment research professionals, investment bankers, risk and performance analysts, and wealth advisors. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.
Qutoutiao Inc. operates mobile platforms for the distribution, consumption, and sharing of light entertainment content in the People's Republic of China. The company operates Qutoutiao, a mobile application that aggregates articles and short videos from professional media and freelancers and presents customized feeds to users; and Quduopai, a mobile application that allows users to create, upload, and view videos. It also provides Midu Novels, a mobile literature application that offers users free literature supported by advertising. The company was formerly known as Qtech Ltd. and changed its name to Qutoutiao Inc. in July 2018. Qutoutiao Inc. was founded in 2016 and is headquartered in Shanghai, China.
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