FactSet Research Systems (NYSE:FDS) and Baidu (NASDAQ:BIDU) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.
Earnings and Valuation
This table compares FactSet Research Systems and Baidu’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||7.41||$267.08 million||$8.53||30.66|
|Baidu||$14.88 billion||3.96||$4.01 billion||$7.80||21.62|
Insider & Institutional Ownership
92.2% of FactSet Research Systems shares are held by institutional investors. Comparatively, 62.6% of Baidu shares are held by institutional investors. 2.3% of FactSet Research Systems shares are held by company insiders. Comparatively, 16.7% of Baidu shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
FactSet Research Systems has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Baidu has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
FactSet Research Systems pays an annual dividend of $2.56 per share and has a dividend yield of 1.0%. Baidu does not pay a dividend. FactSet Research Systems pays out 30.0% of its earnings in the form of a dividend. FactSet Research Systems has raised its dividend for 13 consecutive years.
This table compares FactSet Research Systems and Baidu’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|FactSet Research Systems||22.45%||64.58%||25.14%|
This is a summary of current ratings and price targets for FactSet Research Systems and Baidu, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|FactSet Research Systems||0||10||0||0||2.00|
FactSet Research Systems presently has a consensus target price of $234.70, suggesting a potential downside of 10.25%. Baidu has a consensus target price of $243.67, suggesting a potential upside of 44.50%. Given Baidu’s stronger consensus rating and higher probable upside, analysts plainly believe Baidu is more favorable than FactSet Research Systems.
Baidu beats FactSet Research Systems on 9 of the 17 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.
Baidu, Inc. provides Internet search services in China and internationally. It operates through two segments, Baidu Core and iQIYI. The Baidu Core segment offers products for uses, including Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services through mobile browsers; Baidu Feed that provides users with personalized timeline to meet their personal interests reflected in their past online behaviors; and Bear Paw Account that enables verified brands and businesses to aggregate their content from Websites, wapsites, and open-platform apps. It also provides Baijiahao, a publisher platform for content providers; Baidu Post Bar, a social media platform; Haokan Videos, an online short-form video aggregation platform; Baidu Knows, a knowledge sharing platform; Baidu Encyclopedia; Baidu Education, an online educational resources platform; Baidu Mobile Assistant, a mobile app marketplace; Baidu Mobile Guardian, a phone security software; DuerOS, a conversational artificial intelligence platform; Baidu Wallet, an online and mobile payment service; Baidu Consumer Credit, an installment payment service; Baidu Wealth Management, a wealth management service; Baidu Maps that offers services relating to locations and intelligent routing and navigation; Baidu Cloud Drive, a personal cloud service platform; and various mobile products and services. In addition, this segment offers online marketing services based on search queries, contextuals, audience attributes, media and placement attributes, as well as Baidu Feed; Baidu Cloud, a public cloud computing platform; and Apollo, an open source autonomous driving platform. The iQIYI segment provides Internet video streaming services. It has a strategic partnership with Volvo Cars. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, China.
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