Critical Contrast: Cyxtera Technologies (NASDAQ:CYXT) versus FactSet Research Systems (NYSE:FDS)

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

Profitability

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

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

Analyst Ratings

This is a summary of current recommendations and price targets for FactSet Research Systems and Cyxtera Technologies, as reported by MarketBeat.com.

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

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

Earnings and Valuation

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

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

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

Institutional and Insider Ownership

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

Risk and Volatility

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

Summary

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

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

About Cyxtera Technologies

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

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