Financial Review: MSCI (NYSE:MSCI) versus Schroders (OTCMKTS:SHNWF)

MSCI (NYSE:MSCI) and Schroders (OTCMKTS:SHNWF) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Earnings & Valuation

This table compares MSCI and Schroders”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSCI	$3.13 billion	13.57	$1.20 billion	$17.51	33.38
Schroders	$4.29 billion	2.73	$711.73 million	N/A	N/A

MSCI has higher earnings, but lower revenue than Schroders.

Analyst Ratings

This is a summary of current ratings and price targets for MSCI and Schroders, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSCI	0	2	8	1	2.91
Schroders	1	4	0	0	1.80

MSCI presently has a consensus price target of $692.70, indicating a potential upside of 18.53%. Given MSCI’s stronger consensus rating and higher probable upside, equities research analysts clearly believe MSCI is more favorable than Schroders.

Volatility and Risk

MSCI has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Schroders has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Profitability

This table compares MSCI and Schroders’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MSCI	40.74%	-65.48%	24.49%
Schroders	N/A	N/A	N/A

Insider and Institutional Ownership

90.0% of MSCI shares are held by institutional investors. 3.8% of MSCI shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

MSCI beats Schroders on 11 of the 13 factors compared between the two stocks.

About MSCI

MSCI Inc., together with its subsidiaries, provides critical decision support tools and solutions for the investment community to manage investment processes worldwide. The Index segment provides indexes for use in various areas of the investment process, including indexed financial product, such as ETFs, mutual funds, annuities, futures, options, structured products, and over-the-counter derivatives; performance benchmarking; portfolio construction and rebalancing; and asset allocation, as well as licenses GICS and GICS Direct. The Analytics segment offers risk management, performance attribution and portfolio management content, application, an integrated view of risk and return service, and an analysis of market, credit, liquidity, counterparty, and climate risk across asset classes; managed services, including consolidation of client portfolio data, review and reconciliation of input data and results, and customized reporting; and HedgePlatform to measure, evaluate, and monitor the risk of hedge fund investments. The ESG and Climate segment provides products and services that help institutional investors understand how ESG impacts the long-term risk and return of their portfolio and individual security-level investments; and data, ratings, research, and tools to help investors navigate increasing regulation. The All Other Private Assets segment includes real estate and infrastructure data, benchmarks, return-analytics, climate assessments and market insights; business intelligence to real estate owners, managers, developers, and brokers; and offers investment decision support tools for private capital. The Private Capital Solutions segment offers tools to help private asset investors across mission-critical workflows, such as sourcing terms and conditions, evaluating operating performance, managing risk and other activities supporting private capital investing. MSCI Inc. was incorporated in 1998 and is headquartered in New York, New York.

About Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe. The firm’s alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds. It conducts an in-house research to make its investments. The company was formerly known as New Schroders plc and changed its name to Schroders plc in April 2000. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.