Analyzing Cyxtera Technologies (NASDAQ:CYXT) and FactSet Research Systems (NYSE:FDS)

Cyxtera Technologies (NASDAQ:CYXT) and FactSet Research Systems (NYSE:FDS) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Institutional and Insider Ownership

56.1% of Cyxtera Technologies shares are held by institutional investors. Comparatively, 87.7% of FactSet Research Systems shares are held by institutional investors. 0.8% of FactSet Research Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Cyxtera Technologies and FactSet Research Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cyxtera Technologies N/A N/A -$27.09 million N/A N/A
FactSet Research Systems $1.59 billion 10.14 $399.59 million $10.54 40.52

FactSet Research Systems has higher revenue and earnings than Cyxtera Technologies.

Volatility and Risk

Cyxtera Technologies has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, FactSet Research Systems has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cyxtera Technologies and FactSet Research Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cyxtera Technologies 0 2 6 0 2.75
FactSet Research Systems 3 6 2 0 1.91

Cyxtera Technologies presently has a consensus price target of $13.71, suggesting a potential upside of 21.90%. FactSet Research Systems has a consensus price target of $427.67, suggesting a potential upside of 0.13%. Given Cyxtera Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe Cyxtera Technologies is more favorable than FactSet Research Systems.

Profitability

This table compares Cyxtera Technologies and FactSet Research Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cyxtera Technologies N/A -17.15% -2.81%
FactSet Research Systems 24.94% 43.24% 20.14%

Summary

FactSet Research Systems beats Cyxtera Technologies on 8 of the 11 factors compared between the two stocks.

About Cyxtera Technologies

Starboard Value Acquisition Corp. announced a definitive business combination agreement with Cyxtera Technologies Inc.

About FactSet Research Systems

FactSet Research Systems Inc. (the “”Company”” or “”FactSet””) is a global provider of integrated financial information, analytical applications and services for the investment and corporate communities. Since inception, global financial professionals have utilized the Company’s content and multi-asset class solutions across each stage of the investment process. FactSet’s goal is to provide a seamless user experience spanning idea generation, research, portfolio construction, trade execution, performance measurement, risk management, reporting, and portfolio analysis, in which the Company serves the front, middle, and back offices to drive productivity and improved performance. FactSet’s flexible, open data and technology solutions can be implemented both across the investment portfolio lifecycle or as standalone components serving different workflows in the organization. FactSet is focused on growing the business throughout each of its three segments, the Americas, EMEA (formerly known as Europe), and Asia Pacific. The Company primarily delivers insight and information through the workflow solutions of Research, Analytics and Trading, Content and Technology Solutions (“”CTS””) and Wealt

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