Head to Head Review: Verisk Analytics (NASDAQ:VRSK) vs. Franklin Covey (NYSE:FC)

Franklin Covey (NYSE:FC) and Verisk Analytics (NASDAQ:VRSK) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Insider & Institutional Ownership

69.9% of Franklin Covey shares are owned by institutional investors. Comparatively, 90.0% of Verisk Analytics shares are owned by institutional investors. 15.2% of Franklin Covey shares are owned by insiders. Comparatively, 0.5% of Verisk Analytics shares are owned by 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Franklin Covey and Verisk Analytics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Covey	1	1	2	0	2.25
Verisk Analytics	0	8	6	1	2.53

Franklin Covey presently has a consensus price target of $27.50, indicating a potential upside of 47.43%. Verisk Analytics has a consensus price target of $224.79, indicating a potential upside of 14.76%. Given Franklin Covey’s higher possible upside, equities analysts clearly believe Franklin Covey is more favorable than Verisk Analytics.

Profitability

This table compares Franklin Covey and Verisk Analytics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Covey	0.83%	17.37%	4.04%
Verisk Analytics	28.24%	-239.55%	18.56%

Volatility and Risk

Franklin Covey has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Verisk Analytics has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Earnings and Valuation

This table compares Franklin Covey and Verisk Analytics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Covey	$267.07 million	0.79	$3.07 million	$0.17	109.72
Verisk Analytics	$3.07 billion	8.30	$908.30 million	$6.51	30.09

Verisk Analytics has higher revenue and earnings than Franklin Covey. Verisk Analytics is trading at a lower price-to-earnings ratio than Franklin Covey, indicating that it is currently the more affordable of the two stocks.

Summary

Verisk Analytics beats Franklin Covey on 10 of the 15 factors compared between the two stocks.

About Franklin Covey

Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through Direct Offices, International Licensees, and Education Practice segments. It also provides a suite of individual-effectiveness and leadership-development training and products. In addition, the company operates Strive platform, a learning deployment platform; Impact platform that helps automate implementation of learning initiatives; All Access Pass, a subscription platform that enables improved deployment of content, services, technology, and metrics to deliver behavioral impact at scale; and Leader in Me, which provides access to digital versions of student leadership guides, leadership lessons, illustrated leadership stories, and other resources. Franklin Covey Co. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.

About Verisk Analytics

Verisk Analytics, Inc. provides data analytics and technology solutions to the insurance markets in the United States and internationally. It offers policy language, prospective loss costs, policy writing and rating rules, and various underwriting solutions for risk selection and segmentation, pricing, and workflow optimization; property- and auto- specific rating and underwriting information solutions that allows clients to understand, quantify, underwrite, mitigate, and avoid potential loss for risks; catastrophe modeling solutions, which enables companies to identify, quantify, and plan for the financial consequences of catastrophes for use by insurers, reinsurers, intermediaries, financial institutions, and governments. The company also provides life insurance solutions for transforming current workflows in life insurance underwriting, claim insights, policy administration, unclaimed property/equity, compliance and fraud detection, and actuarial and portfolio modeling; Marketing Solutions, such as compliant, real-time decisioning, profitability, and risk assessment for inbound consumer interactions; and international underwriting and claims solutions. In addition, it offers claims insurance solutions, which provides analytics in fraud detection, compliance reporting, subrogation liability assessment, litigation, and repair cost estimation and valuation solutions; and casualty solutions, such as compliance, casualty claims decision support, and workflow automation solutions. Further, the company supplies software to the specialty insurance market. The company was founded in 1971 and is headquartered in Jersey City, New Jersey.