Timing is everything, especially when choosing between two formidable players in the financial services sector like FactSet Research Systems and Dun & Bradstreet. FactSet, a stalwart on the NYSE, is often considered a beacon of reliability with its robust financial metrics. With an impressive operating margin of 23.39% and a free cash flow of $614.7M, FactSet demonstrates a solid financial foundation that could entice investors looking for stability and growth potential. As we delve deeper into whether FactSet outshines its competitor, it's crucial to weigh these financial strengths against market conditions and strategic positioning. Dun & Bradstreet's stock rose by 1.14% today, while FactSet Research Systems saw a 3.22% increase. With many traders cautious about the capital markets sector, it's worth taking a closer look at FactSet Research Systems. How does it compare to Dun & Bradstreet and similar companies? Let's explore some of the competitive advantages and differences between FactSet and Dun & Bradstreet to better understand their positions in the market.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as FactSet or Dun is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding FactSet Research dividends
A dividend is the distribution of a portion of FactSet Research earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. FactSet Research dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. FactSet one year expected dividend income is about USD2.64 per share.
Dividends Paid is likely to gain to about (143.1
M) in 2024.
Dividend Yield is likely to drop to 0.01 in 2024.
Investing in dividend-paying stocks, such as FactSet Research Systems is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in FactSet Research must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for FactSet Research. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is FactSet Research's Liquidity
FactSet Research
financial leverage refers to using borrowed capital as a funding source to finance FactSet Research Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. FactSet Research financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to FactSet Research's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of FactSet Research's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between FactSet Research's total debt and its cash.
Correlation Between FactSet and Dun Bradstreet Holdings
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding FactSet Research together with similar or unrelated positions with a negative correlation. For example, you can also add Dun Bradstreet to your portfolio. If Dun Bradstreet is not perfectly correlated to FactSet Research it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When FactSet Research, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both FactSet Research and Dun Bradstreet in your portfolio? Please note if you are using this as a pair-trade strategy between FactSet Research and Dun Bradstreet, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between FDS and DNB for more information.
Is FactSet Research valued wisely by the market?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me take a closer look at FactSet Research revenue. Based on the latest financial disclosure, FactSet Research Systems reported 2.2
B of revenue.
This is 80.35% lower than that of the Capital Markets sector and significantly higher than that of the
Financials industry. The revenue for all United States stocks is 76.65% higher than that of FactSet Research. As for Dun Bradstreet we see revenue of 2.31
B, which is much higher than that of the Financials
| FactSet | 2.2 Billion |
| Sector | 0.0 |
| Dun | 2.31 Billion |
"Knowledge is power" is a saying that rings true in the investment world, especially when considering FactSet Research Systems as a potential choice over Dun & Bradstreet. FactSet boasts a robust earnings per share estimate of 16.3 for the current year, reflecting its strong profitability. With a market capitalization of $18.57 billion and a price-to-earnings ratio of 45.01, FactSet is positioned as a premium player in the capital markets sector. Its impressive return on equity of 0.3 further underscores its efficiency in generating profits from shareholders' investments. While the company's payout ratio stands at 0.25, indicating a balanced approach to rewarding shareholders, its high institutional ownership of 96.34% suggests strong confidence from major investors..
Our perspective of the newest FactSet Research drop
FactSet Research Systems has recently seen a decline, with a Treynor ratio of 0.15 indicating concerns about its risk-adjusted returns. This suggests that the stock's performance, when adjusted for market risk, may not meet investor expectations, warranting caution. Despite the ongoing demand for FactSet's financial data services, this metric implies that shareholders might not be receiving adequate compensation for the risks involved. Investors should consider this ratio when reassessing their positions, particularly if risk management is a priority.
As of December 18, 2024, FactSet shows a downside deviation of 0.9454, a semi-deviation of 0.8291, and a mean deviation of 0.8365. Analyzing historical prices and volume patterns can help predict future price directions. Confirming the standard deviation and the relationship between maximum drawdown and expected shortfall can help determine if FactSet is fairly priced at $473.05 per share. With a Jensen alpha of 0.0673, it's important to verify FactSet's current market performance to ensure its future sustainability.
When is the right time to buy or sell FactSet Research Systems? Buying stocks such as FactSet Research isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To sum up, as of the 18th of December 2024, we see that FactSet Research follows the market closely. The firm is
fairly valued with
very low probability of financial unrest within the next 24 months. Our latest 90 days buy-hold-sell recommendation on the firm is
Buy.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of FactSet Research Systems. Please refer to our
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