Analyzing Relx (NYSE:RELX) & Its Rivals

Relx (NYSE: RELX) is one of 21 publicly-traded companies in the “Professional Information Services” industry, but how does it contrast to its peers? We will compare Relx to related businesses based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, profitability and institutional ownership.

Risk & Volatility

Relx has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Relx’s peers have a beta of 1.02, suggesting that their average share price is 2% more volatile than the S&P 500.

Dividends

Relx pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Relx pays out 111.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Professional Information Services” companies pay a dividend yield of 1.4% and pay out 39.6% of their earnings in the form of a dividend. Relx has raised its dividend for 2 consecutive years.

Insider & Institutional Ownership

2.4% of Relx shares are owned by institutional investors. Comparatively, 62.6% of shares of all “Professional Information Services” companies are owned by institutional investors. 10.5% of shares of all “Professional Information Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Relx and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Relx N/A N/A N/A
Relx Competitors 2.80% 14.34% 3.30%

Analyst Ratings

This is a breakdown of recent recommendations for Relx and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Relx 0 0 3 0 3.00
Relx Competitors 62 496 607 7 2.48

As a group, “Professional Information Services” companies have a potential downside of 3.04%. Given Relx’s peers higher possible upside, analysts plainly believe Relx has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Relx and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Relx $9.91 billion $1.57 billion 53.28
Relx Competitors $3.13 billion $588.72 million 1,167.70

Relx has higher revenue and earnings than its peers. Relx is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Relx peers beat Relx on 10 of the 15 factors compared.

Relx Company Profile

RELX PLC is a holding company, which holds interests in RELX Group plc. RELX Group is a global provider of information and analytics for professional and business customers across industries. The Company operates in four segments: Scientific, Technical & Medical; Risk & Business Analytics; Legal, and Exhibitions. The Company’s Scientific, Technical & Medical segment provides information and analytics that help institutions and professionals progress science and advance healthcare. The Risk & Business Analytics segment provides solutions and decision tools that combine public and industry-specific content with technology and analytics. The Legal segment is a provider of information and analytics to professionals in legal, corporate, government and non-profit organizations. Its Exhibitions segment consists of Reed Exhibitions, which is an exhibitions business, with events in over 30 countries.

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