Dun & Bradstreet (NYSE: DNB) and Equifax (NYSE:EFX) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
This table compares Dun & Bradstreet and Equifax’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dun & Bradstreet||8.09%||-30.74%||11.75%|
This table compares Dun & Bradstreet and Equifax’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dun & Bradstreet||$1.74 billion||2.45||$140.90 million||$7.36||15.70|
|Equifax||$3.36 billion||4.20||$587.30 million||$5.97||19.70|
Equifax has higher revenue and earnings than Dun & Bradstreet. Dun & Bradstreet is trading at a lower price-to-earnings ratio than Equifax, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Dun & Bradstreet and Equifax, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dun & Bradstreet||0||3||2||0||2.40|
Dun & Bradstreet currently has a consensus target price of $129.00, indicating a potential upside of 11.63%. Equifax has a consensus target price of $128.21, indicating a potential upside of 9.04%. Given Dun & Bradstreet’s higher possible upside, analysts plainly believe Dun & Bradstreet is more favorable than Equifax.
Insider & Institutional Ownership
91.5% of Dun & Bradstreet shares are held by institutional investors. Comparatively, 93.4% of Equifax shares are held by institutional investors. 0.4% of Dun & Bradstreet shares are held by company insiders. Comparatively, 1.3% of Equifax shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Dun & Bradstreet pays an annual dividend of $2.09 per share and has a dividend yield of 1.8%. Equifax pays an annual dividend of $1.56 per share and has a dividend yield of 1.3%. Dun & Bradstreet pays out 28.4% of its earnings in the form of a dividend. Equifax pays out 26.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dun & Bradstreet has raised its dividend for 11 consecutive years and Equifax has raised its dividend for 6 consecutive years. Dun & Bradstreet is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Dun & Bradstreet has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Equifax has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.
Equifax beats Dun & Bradstreet on 11 of the 17 factors compared between the two stocks.
Dun & Bradstreet Company Profile
The Dun & Bradstreet Corporation provides commercial data, analytics, and insight on businesses. The company operates through two segments, Americas and Non-Americas. It offers risk management solutions comprising trade credit solutions, such as The D&B Credit Suite, which includes D&B Credit and DNBi, subscription-based online applications that offer customers real time access to information, comprehensive monitoring, and portfolio analysis; various business information reports; and D&B Credibility solutions primarily for small businesses; Supplier Risk Manager, an online application that helps businesses mitigate supply chain risk; Compliance product suite that includes D&B Onboard and D&B Compliance Check, which helps customers comply with anti-money laundering and anti-bribery and corruption regulations through onboarding, screening, and monitoring of customers and third parties; and D&B Direct, an API that enables data integration inside enterprise applications, such as ERP, and enables master data management and toolkit. The company also offers sales acceleration solutions that enable B2B sales and marketing professionals to accelerate sales, enhance go-to-market activity, engage in a meaningful way, and close business faster; MDR Integrated Education Marketing, a source for education data services, sales tools, digital marketing solutions, and market research. In addition, it offers marketing solutions, such as Optimizer, a master data solution; D&B Master Data that empowers customers to understand business relationships; D&B Audience Targeting, which helps customers serve the right ads to the right audiences; and D&B Visitor Intelligence that helps B2B marketers unmask anonymous Web traffic in real-time. It serves customers in communication, technology, government, strategic financial services, retail, telecommunications, and manufacturing. The Dun & Bradstreet Corporation was founded in 1841 and is headquartered in Short Hills, New Jersey.
Equifax Company Profile
Equifax Inc. provides information solutions and human resources business process outsourcing services for businesses, governments, and consumers. The company operates through four segments: U.S. Information Solutions (USIS), International, Workforce Solutions, and Global Consumer Solutions. The USIS segment offers consumer and commercial information services, such as credit information and credit scoring, credit modeling and portfolio analytics, locate, fraud detection and prevention, identity verification, and other consulting; mortgage loan origination information; financial marketing; and identity management services. The International segment provides information service products, which include consumer and commercial services, such as credit and financial information, and credit scoring and modeling; and credit and other marketing products and services, as well as offers information, technology, and services to support debt collections and recovery management. The Workforce Solutions segment provides employment, income, and social security number verification services; and payroll-based transaction and employment tax management services. The Global Consumer Solutions segment offers credit information, credit monitoring, and identity theft protection products directly to consumers through the Internet and hard-copy formats. It serves customers in financial service, mortgage, employers, consumer, commercial, telecommunication, retail, automotive, utility, brokerage, healthcare, and insurance industries, as well as state and federal governments. The company operates in the United States, Canada, Australia, New Zealand, the United Kingdom, Spain, Portugal, Argentina, Brazil, Chile, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Uruguay, Peru, the Republic of Ireland, Russia, India, Cambodia, Malaysia, Singapore, and Dubai. Equifax Inc. was founded in 1899 and is headquartered in Atlanta, Georgia.
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