Critical Contrast: Broadridge Financial Solutions (NYSE:BR) vs. Grab (NASDAQ:GRAB)

Broadridge Financial Solutions (NYSE:BR) and Grab (NASDAQ:GRAB) are both large-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Institutional and Insider Ownership

90.0% of Broadridge Financial Solutions shares are held by institutional investors. Comparatively, 55.5% of Grab shares are held by institutional investors. 1.6% of Broadridge Financial Solutions shares are held by company insiders. Comparatively, 3.6% of Grab shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Broadridge Financial Solutions has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Grab has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Profitability

This table compares Broadridge Financial Solutions and Grab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadridge Financial Solutions	10.82%	41.12%	10.58%
Grab	-18.43%	-6.77%	-5.10%

Earnings & Valuation

This table compares Broadridge Financial Solutions and Grab’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadridge Financial Solutions	$6.06 billion	3.76	$630.60 million	$5.74	33.73
Grab	$2.36 billion	5.44	-$434.00 million	($0.10)	-32.70

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Broadridge Financial Solutions and Grab, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadridge Financial Solutions	0	4	3	0	2.43
Grab	0	0	6	0	3.00

Broadridge Financial Solutions currently has a consensus price target of $206.67, indicating a potential upside of 5.92%. Grab has a consensus price target of $5.10, indicating a potential upside of 56.44%. Given Grab’s stronger consensus rating and higher probable upside, analysts clearly believe Grab is more favorable than Broadridge Financial Solutions.

Summary

Broadridge Financial Solutions beats Grab on 9 of the 14 factors compared between the two stocks.

About Broadridge Financial Solutions

Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry. The company's Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote processing services; and distributes regulatory reports, class action, and corporate action/reorganization event information, as well as tax reporting solutions. It also offers ProxyEdge, an electronic proxy delivery and voting solution; data-driven solutions and an end-to-end platform for content management, composition, and omni-channel distribution of regulatory, marketing, and transactional information, as well as mutual fund trade processing services; solutions for public corporations and mutual funds; data and analytics solutions; SEC filing and capital markets transaction services; registrar, stock transfer, and record-keeping services; and omni-channel customer communications solutions, as well as operates Broadridge Communications Cloud platform that creates, delivers, and manages communications and customer engagement activities. Its Global Technology and Operations segment provides solutions that automate the front-to-back transaction lifecycle of equity, mutual fund, fixed income, foreign exchange and exchange-traded derivatives, order capture and execution, trade confirmation, margin, cash management, clearing and settlement, reference data management, reconciliations, securities financing and collateral management, asset servicing, compliance and regulatory reporting, portfolio accounting, and custody-related services. This segment also offers business process outsourcing services; technology solutions, such portfolio management, compliance, fee billing, and operational support solutions; and capital market and wealth and investment management solutions. The company was founded in 1962 and is headquartered in Lake Success, New York.

About Grab

Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. The company is headquartered in Singapore.