Critical Contrast: Relx (OTCMKTS:RLXXF) and Gartner (NYSE:IT)

Gartner (NYSE:IT) and Relx (OTCMKTS:RLXXF) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Insider & Institutional Ownership

91.5% of Gartner shares are held by institutional investors. 2.6% of Gartner shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Gartner and Relx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gartner	11.99%	525.46%	13.45%
Relx	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Gartner and Relx, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gartner	2	7	2	1	2.17
Relx	0	0	0	0	0.00

Gartner presently has a consensus target price of $187.30, indicating a potential downside of 1.51%. Given Gartner’s stronger consensus rating and higher probable upside, equities analysts clearly believe Gartner is more favorable than Relx.

Valuation and Earnings

This table compares Gartner and Relx”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gartner	$6.50 billion	1.85	$729.23 million	$11.15	17.06
Relx	N/A	N/A	N/A	N/A	N/A

Gartner has higher revenue and earnings than Relx.

Summary

Gartner beats Relx on 10 of the 10 factors compared between the two stocks.

About Gartner

Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network. The Consulting segment offers market-leading research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.

About Relx

RELX PLC, together with its subsidiaries, provides information-based analytics and decision tools for professional and business customers in North America, Europe, and internationally. It operates through four segments: Risk; Scientific, Technical & Medical; Legal; and Exhibitions. The Risk segment offers information-based analytics and decision tools that combine public and industry specific content with technology and algorithms to assist clients in evaluating and predicting risk. The Scientific, Technical & Medical segment provides information and data sets that help researchers and healthcare professionals to advance science and health outcomes. The Legal segment provides legal, regulatory, and business information and analytics that help customers in decision-making, as well as increases the productivity. The Exhibitions segment is involved in the business that combines face-to-face with data and digital tools to help customers learn about markets, source products, and complete transactions. The company was formerly known as Reed Elsevier PLC and changed its name to RELX PLC in July 2015. RELX PLC was incorporated in 1903 and is headquartered in London, the United Kingdom.