Reviewing Msci (MSCI) & CAPITA Grp/ADR (CTAGY)

CAPITA Grp/ADR (OTCMKTS:CTAGY) and Msci (NYSE:MSCI) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Valuation and Earnings

This table compares CAPITA Grp/ADR and Msci’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CAPITA Grp/ADR $5.46 billion 0.20 -$150.91 million $2.35 2.81
Msci $1.27 billion 10.72 $303.97 million $3.98 38.63

Msci has lower revenue, but higher earnings than CAPITA Grp/ADR. CAPITA Grp/ADR is trading at a lower price-to-earnings ratio than Msci, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

CAPITA Grp/ADR has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Msci has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for CAPITA Grp/ADR and Msci, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CAPITA Grp/ADR 0 0 1 0 3.00
Msci 0 3 5 0 2.63

Msci has a consensus target price of $179.29, indicating a potential upside of 16.61%. Given Msci’s higher possible upside, analysts clearly believe Msci is more favorable than CAPITA Grp/ADR.

Institutional and Insider Ownership

91.2% of Msci shares are held by institutional investors. 2.4% of Msci shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares CAPITA Grp/ADR and Msci’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CAPITA Grp/ADR N/A N/A N/A
Msci 27.83% 114.65% 12.93%

Dividends

CAPITA Grp/ADR pays an annual dividend of $0.55 per share and has a dividend yield of 8.3%. Msci pays an annual dividend of $2.32 per share and has a dividend yield of 1.5%. CAPITA Grp/ADR pays out 23.4% of its earnings in the form of a dividend. Msci pays out 58.3% 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. Msci has increased its dividend for 3 consecutive years. CAPITA Grp/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Msci beats CAPITA Grp/ADR on 13 of the 17 factors compared between the two stocks.

CAPITA Grp/ADR Company Profile

Capita plc provides customer management, administration, and professional support services to clients in the private and public sectors. The company offers business process management, business transformation, corporate and administration, customer management, digital and software solution, financial, HR and recruitment, information technology, legal, procurement, property and infrastructure, start-up development, and travel and event services. Capita plc provides its services to banking and financial services, insurance, life and pensions, retail, telecoms and media, transport, utilities, central and local government, defense, education, emergency services, health, police and justice, and science sectors. The company operates in the United Kingdom, Ireland, the European Union, the Channel Islands, India, South Africa, North America, and the Middle East. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is headquartered in London, the United Kingdom.

Msci Company Profile

MSCI Inc., together with its subsidiaries, provides investment decision support tools for the clients to manage their investment processes worldwide. The company operates through four segments: Index, Analytics, ESG, and Real Estate. The Index segment primarily provides equity indexes for use in various areas of the investment process, including index-linked product creation and performance benchmarking, as well as portfolio construction and rebalancing, and asset allocation. The Analytics segment offers risk management, performance attribution, and portfolio management content, applications, and services that provide clients with an integrated view of risk and return, and an analysis of market, credit, liquidity, and counterparty risk across various asset classes, spanning short, medium, and long-term time horizons; and various managed services for clients to address the needs of various specialized areas of the investment community by providing a reporting service and performance reporting tools to institutional consultants and investors in hedge funds. The ESG segment provides products and services that help institutional investors understand how environmental, social, and governance (ESG) factors impact the long-term risk of their investments; and data and ratings products for use in the construction of equity and fixed income indexes to help institutional investors benchmark ESG investment performance and issue index-based investment products, as well as manage, measure, and report on ESG mandates. The Real Estate segment offers real estate performance analysis for funds, investors, managers, and lenders. This segment provides products and services that include research, reporting, and benchmarking; and business intelligence to real estate owners, managers, developers, and brokers. MSCI Inc. was founded in 1998 and is headquartered in New York, New York.

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