Financial Comparison: Alight (NYSE:ALIT) versus Broadridge Financial Solutions (NYSE:BR)

Alight (NYSE:ALIT) and Broadridge Financial Solutions (NYSE:BR) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Volatility and Risk

Alight has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Broadridge Financial Solutions has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Alight and Broadridge Financial Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alight	2	3	3	0	2.13
Broadridge Financial Solutions	0	4	4	0	2.50

Alight presently has a consensus target price of $3.56, indicating a potential upside of 518.63%. Broadridge Financial Solutions has a consensus target price of $221.57, indicating a potential upside of 61.33%. Given Alight’s higher probable upside, equities research analysts clearly believe Alight is more favorable than Broadridge Financial Solutions.

Institutional and Insider Ownership

96.7% of Alight shares are held by institutional investors. Comparatively, 90.0% of Broadridge Financial Solutions shares are held by institutional investors. 2.1% of Alight shares are held by insiders. Comparatively, 1.1% of Broadridge Financial Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Alight and Broadridge Financial Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alight	$2.26 billion	0.14	-$3.10 billion	($5.87)	-0.10
Broadridge Financial Solutions	$7.32 billion	2.17	$839.50 million	$9.34	14.70

Broadridge Financial Solutions has higher revenue and earnings than Alight. Alight 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alight	-137.50%	13.04%	4.42%
Broadridge Financial Solutions	15.03%	40.14%	12.87%

Summary

Broadridge Financial Solutions beats Alight on 10 of the 14 factors compared between the two stocks.

About Alight

Alight, Inc. provides cloud-based integrated digital human capital and business solutions worldwide. The company operates through two segments, Employer Solutions and Professional Services. The Employer Solutions segment offers employee wellbeing, integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, retiree healthcare and payroll; and operates AI-led capabilities software. The Professional Services segment offers consulting offerings, such as cloud advisory, deployment, and optimization services for cloud platforms. The company provides Alight Worklife, an intuitive, cloud-based employee engagement platform. Its solutions enable employees to enrich their health, wealth, and wellbeing that helps organizations achieve a high-performance culture. Alight, Inc. was founded in 2020 and is based in Lincolnshire, Illinois.

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.