Analyzing S&P Global (NYSE:SPGI) and London Stock Exchange Group (OTCMKTS:LNSTY)

S&P Global (NYSE:SPGI) and London Stock Exchange Group (OTCMKTS:LNSTY) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Valuation and Earnings

This table compares S&P Global and London Stock Exchange Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
S&P Global	$14.21 billion	11.32	$3.85 billion	$12.73	41.20
London Stock Exchange Group	$10.96 billion	7.03	$875.36 million	N/A	N/A

S&P Global has higher revenue and earnings than London Stock Exchange Group.

Dividends

S&P Global pays an annual dividend of $3.84 per share and has a dividend yield of 0.7%. London Stock Exchange Group pays an annual dividend of $0.48 per share and has a dividend yield of 1.3%. S&P Global pays out 30.2% of its earnings in the form of a dividend. S&P Global has increased its dividend for 53 consecutive years.

Insider & Institutional Ownership

87.2% of S&P Global shares are held by institutional investors. 0.1% of S&P Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares S&P Global and London Stock Exchange Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
S&P Global	27.27%	14.68%	8.26%
London Stock Exchange Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for S&P Global and London Stock Exchange Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
S&P Global	0	1	14	1	3.00
London Stock Exchange Group	0	1	0	1	3.00

S&P Global currently has a consensus target price of $596.79, indicating a potential upside of 13.78%. Given S&P Global’s higher probable upside, equities research analysts clearly believe S&P Global is more favorable than London Stock Exchange Group.

Summary

S&P Global beats London Stock Exchange Group on 11 of the 13 factors compared between the two stocks.

About S&P Global

S&P Global, Inc. engages in the provision of transparent and independent ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. It operates through the following segments: Market Intelligence, Ratings, Commodity Insights, Mobility, Indices, and Engineering Solutions. The Market Intelligence segment provides multi-asset-class data and analytics integrated with purpose-built workflow solutions. The Ratings segment is involved in credit ratings, research, and analytics, offering investors and other market participants information, ratings, and benchmarks. The Commodity Insights segment focuses on information and benchmark prices for the commodity and energy markets. The Mobility segment offers solutions serving the full automotive value chain including vehicle manufacturers, automotive suppliers, mobility service providers, retailers, consumers, and finance and insurance companies. The Engineering Solutions segment engages in advanced knowledge discovery technologies, research tools, and software-based engineering decision engines to advance innovation, maximize productivity, improve quality, and reduce risk. The company was founded by James H. McGraw and John A. Hill in 1917 and is headquartered in New York, NY.

About London Stock Exchange Group

London Stock Exchange Group plc operates as a financial markets infrastructure and data provider primarily in the United Kingdom and internationally. The company operates in three segments: Data & Analytics, Capital Markets, and Post Trade. It operates a range of international equity, fixed income, exchange-traded funds/exchange-traded products, and foreign exchange markets through the London Stock Exchange, AIM, Turquoise, FXall, Matching, and Tradeweb. The company also provides information and data products, such as indexes, benchmarks, real time pricing data and trade reporting, and reconciliation services, as well as network connection and services; market trading services; and clearing, risk management, capital optimization, and regulatory reporting solutions. In addition, it licenses capital markets; installs software; and provides maintenance, and events and media services. The company was founded in 1698 and is headquartered in London, the United Kingdom.