uCloudlink Group (NASDAQ:UCL) vs. FactSet Research Systems (NYSE:FDS) Critical Analysis

FactSet Research Systems (NYSE:FDS) and uCloudlink Group (NASDAQ:UCL) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Institutional and Insider Ownership

91.2% of FactSet Research Systems shares are held by institutional investors. Comparatively, 85.5% of uCloudlink Group shares are held by institutional investors. 1.1% of FactSet Research Systems shares are held by insiders. Comparatively, 54.6% of uCloudlink Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares FactSet Research Systems and uCloudlink Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FactSet Research Systems	$2.32 billion	4.60	$597.04 million	$15.55	18.16
uCloudlink Group	$91.64 million	0.89	$4.56 million	$0.05	43.20

FactSet Research Systems has higher revenue and earnings than uCloudlink Group. FactSet Research Systems is trading at a lower price-to-earnings ratio than uCloudlink Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for FactSet Research Systems and uCloudlink Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FactSet Research Systems	6	8	1	0	1.67
uCloudlink Group	0	1	0	0	2.00

FactSet Research Systems presently has a consensus target price of $359.10, indicating a potential upside of 27.14%. Given FactSet Research Systems’ higher possible upside, research analysts clearly believe FactSet Research Systems is more favorable than uCloudlink Group.

Profitability

This table compares FactSet Research Systems and uCloudlink Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FactSet Research Systems	25.72%	31.06%	15.39%
uCloudlink Group	2.19%	8.89%	3.10%

Volatility & Risk

FactSet Research Systems has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, uCloudlink Group has a beta of 4.3, meaning that its share price is 330% more volatile than the S&P 500.

Summary

FactSet Research Systems beats uCloudlink Group on 10 of the 14 factors compared between the two stocks.

About FactSet Research Systems

FactSet Research Systems Inc., a financial data company, provides integrated financial information and analytical applications to the investment community in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company delivers insight and information through the workflow solutions of research, analytics and trading, content and technology solutions, and wealth. It serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.

About uCloudlink Group

uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. The company provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators, mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. It also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solution for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value-added services, such as advertisement. Further, it's platform-as-a-service/software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. uCloudlink Group Inc. was incorporated in 2014 and is headquartered in Tsim Sha Tsui, Hong Kong.