Financial Analysis: Broadridge Financial Solutions (NYSE:BR) & Cirata (OTCMKTS:WANSF)

Broadridge Financial Solutions (NYSE:BR) and Cirata (OTCMKTS:WANSF) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Risk & Volatility

Broadridge Financial Solutions has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Cirata has a beta of -22.44, meaning that its share price is 2,344% less volatile than the S&P 500.

Earnings and Valuation

This table compares Broadridge Financial Solutions and Cirata”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	$6.89 billion	3.94	$839.50 million	$7.09	32.77
Cirata	$7.68 million	3.95	-$13.51 million	N/A	N/A

Broadridge Financial Solutions has higher revenue and earnings than Cirata.

Analyst Recommendations

This is a breakdown of recent ratings for Broadridge Financial Solutions and Cirata, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadridge Financial Solutions	0	5	3	0	2.38
Cirata	0	0	0	0	0.00

Broadridge Financial Solutions currently has a consensus target price of $261.50, indicating a potential upside of 12.54%. Given Broadridge Financial Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Broadridge Financial Solutions is more favorable than Cirata.

Institutional and Insider Ownership

90.0% of Broadridge Financial Solutions shares are held by institutional investors. 1.1% of Broadridge Financial Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Broadridge Financial Solutions	12.19%	42.72%	12.23%
Cirata	N/A	N/A	N/A

Summary

Broadridge Financial Solutions beats Cirata on 11 of the 12 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 Cirata

Cirata plc, together with its subsidiaries, engages in the development and provision of collaboration software in North America, Europe, China, and internationally. The company provides Data Migrator, an automated solution that moves on-premises HDFS data, Hive metadata, local filesystem, or cloud data sources to any cloud or on-premises environment; and Data Migrator for Hadoop, a cloud migration solution that automates the seamless transfer of HDFS data and Hive metadata to the cloud. It also offers Access Control Plus, an access control solution, that enables project administrators to manage the complexity of complete and proper authentication (AuthN) and authorization (AuthZ) configuration file generation; and Gerrit MultiSite, a development team collaboration solution, which enables replication of Gerrit server and packaged in a simple to deploy and maintain format. In addition, the company provides Git MultiSite and Subversion MultiSite Plus solutions enable distributed teams to collaborate as one with no downtime, no disruption, and consistent security policy enforcement across all locations. It offers its solutions for automotive, telecommunications, and financial service industries. The company was formerly known as WANdisco plc and changed its name to Cirata plc in October 2023. Cirata plc was incorporated in 2012 and is based in St. Helier, Jersey.