Head-To-Head Comparison: TransUnion (NYSE:TRU) and Clarivate (NYSE:CLVT)

TransUnion (NYSE:TRU) and Clarivate (NYSE:CLVT) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares TransUnion and Clarivate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TransUnion	15.08%	16.29%	6.67%
Clarivate	-13.84%	9.15%	3.99%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for TransUnion and Clarivate, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransUnion	0	6	10	0	2.62
Clarivate	3	4	1	0	1.75

TransUnion currently has a consensus target price of $91.00, indicating a potential upside of 16.23%. Clarivate has a consensus target price of $3.02, indicating a potential upside of 69.95%. Given Clarivate’s higher probable upside, analysts clearly believe Clarivate is more favorable than TransUnion.

Earnings and Valuation

This table compares TransUnion and Clarivate”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TransUnion	$4.90 billion	3.06	$455.40 million	$3.79	20.66
Clarivate	$2.46 billion	0.46	-$201.10 million	($0.52)	-3.41

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

Institutional & Insider Ownership

85.7% of Clarivate shares are held by institutional investors. 0.4% of TransUnion shares are held by insiders. Comparatively, 22.9% of Clarivate shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

TransUnion has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, Clarivate has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Summary

TransUnion beats Clarivate on 11 of the 14 factors compared between the two stocks.

About TransUnion

TransUnion operates as a global consumer credit reporting agency that provides risk and information solutions. The company operates through U.S. Markets, International, and Consumer Interactive segments. The U.S. Markets segment provides consumer reports, actionable insights, and analytic services to businesses, which uses its services to acquire new customers; assess consumer ability to pay for services; identify cross-selling opportunities; measure and manage debt portfolio risk; collect debt; verify consumer identities; and mitigate fraud risk. This segment serves various industry vertical markets, including financial services, technology, commerce and communications, insurance, media, services and collections, tenant and employment, and public sectors. The International segment offers credit reports, analytics, technology solutions, and other value-added risk management services; consumer services, which help consumers to manage their personal finances; consumer credit reporting, insurance and auto information solutions, and commercial credit information services. It serves customers in financial services, retail credit, insurance, automotive, collections, public sector, and communications industries through direct and indirect channels. The company was formerly known as TransUnion Holding Company, Inc. and changed its name to TransUnion in March 2015. TransUnion was founded in 1968 and is headquartered in Chicago, Illinois.

About Clarivate

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.