Institutional and Insider Ownership
Verisk Analytics (NASDAQ: VRSK) and Convergys Corporation (NYSE:CVG) are both mid-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitabiliy, institutional ownership and earnings.
92.3% of Verisk Analytics shares are held by institutional investors. Comparatively, 99.7% of Convergys Corporation shares are held by institutional investors. 3.4% of Verisk Analytics shares are held by company insiders. Comparatively, 1.7% of Convergys Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Verisk Analytics and Convergys Corporation, as reported by MarketBeat.com.
Verisk Analytics currently has a consensus target price of $85.38, suggesting a potential downside of 2.06%. Convergys Corporation has a consensus target price of $30.00, suggesting a potential upside of 24.48%. Given Convergys Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Convergys Corporation is more favorable than Verisk Analytics.
Volatility and Risk
Verisk Analytics has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Convergys Corporation has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.
Convergys Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Verisk Analytics does not pay a dividend. Convergys Corporation pays out 30.1% of its earnings in the form of a dividend. Convergys Corporation has raised its dividend for 4 consecutive years.
Valuation & Earnings
This table compares Verisk Analytics and Convergys Corporation’s revenue, earnings per share (EPS) and valuation.
Verisk Analytics has higher revenue, but lower earnings than Convergys Corporation. Convergys Corporation is trading at a lower price-to-earnings ratio than Verisk Analytics, indicating that it is currently the more affordable of the two stocks.
This table compares Verisk Analytics and Convergys Corporation’s net margins, return on equity and return on assets.
Verisk Analytics beats Convergys Corporation on 10 of the 17 factors compared between the two stocks.
Verisk Analytics Company Profile
Verisk Analytics, Inc. is a data analytics provider serving customers in insurance, natural resources and financial services. The Company operates through two segments: Risk Assessment and Decision Analytics. Its Risk Assessment segment serves its property and casualty insurance customers and focuses on prediction of loss, selection and pricing of risk, and compliance with their reporting requirements in each United States state in which they operate. In the Decision Analytics segment, the Company develops predictive models to forecast scenarios and produce both standard and customized analytics that help its customers manage their businesses, including predicting loss, selecting and pricing risk, detecting fraud before and after a loss event, and quantifying losses. It offers predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, natural resources intelligence, economic forecasting and various other fields.
Convergys Corporation Company Profile
Convergys Corporation is engaged in customer experience outsourcing. The Company’s geographical segments include North America and Rest of World. The Company offers services across industries, including communications and media, technology, financial services, retail, government and healthcare. The Company helps businesses to create customer experiences across multiple interaction channels, such as voice, chat, e-mail and interactive voice response. The Company provides solutions across the customer lifecycle, including sales, customer service, technical support, customer retention and collections. Its omni-channel contact center technology solutions include multichannel interaction solutions, cross-channel integration framework and robotic process automation. It offers analytics and consulting, and software solutions, including integrated customer experience analytics, post-contact surveys, relational loyalty research, and customer segmentation and profiling.