Financial Comparison: Viad (NYSE:VVI) versus Nielsen (NYSE:NLSN)

Viad (NYSE:VVI) and Nielsen (NYSE:NLSN) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Volatility & Risk

Viad has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500. Comparatively, Nielsen has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Profitability

This table compares Viad and Nielsen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viad -92.11% -86.57% -15.20%
Nielsen 13.93% 23.22% 4.77%

Earnings & Valuation

This table compares Viad and Nielsen’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viad $415.43 million 2.27 -$374.09 million ($5.85) -7.88
Nielsen $6.29 billion 1.12 -$6.00 million $1.52 12.97

Nielsen has higher revenue and earnings than Viad. Viad is trading at a lower price-to-earnings ratio than Nielsen, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

91.7% of Viad shares are held by institutional investors. 1.8% of Viad shares are held by insiders. Comparatively, 0.5% of Nielsen shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Viad and Nielsen, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viad 0 0 1 0 3.00
Nielsen 0 5 2 0 2.29

Viad currently has a consensus target price of $56.00, indicating a potential upside of 21.45%. Nielsen has a consensus target price of $25.57, indicating a potential upside of 29.67%. Given Nielsen’s higher probable upside, analysts plainly believe Nielsen is more favorable than Viad.

Summary

Nielsen beats Viad on 9 of the 14 factors compared between the two stocks.

Viad Company Profile

Viad Corp. engages in the provision of marketing services and travel and recreation services. It operates through the following segments: GES U.S., GES International, (collectively, GES) and Pursuit. The GES business group offers live event service to visible and influential events and global brands. The Pursuit business group refers to the collection of iconic natural and cultural destination experiences. The company was founded in 1926 and is headquartered in Phoenix, AZ.

Nielsen Company Profile

Nielsen Holdings Plc engages in the provision of global marketing data collection and analytics services. It operates through the Connect, Media, and Corporate business segments. The Connect segment consists principally of market research information and analytical services. The Media segment handles television, radio, online and mobile audience and advertising measurement, and corresponding analytics. The corporate segment includes unallocated items such as certain facilities and infrastructure costs as well as intersegment eliminations. The company was founded by Arthur C. Nielsen, Sr. in 1923 and is headquartered in New York, NY.

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