Broadridge Financial Solutions (NYSE:BR – Get Free Report) and Gartner (NYSE:IT – Get Free Report) are both large-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
Valuation & Earnings
This table compares Broadridge Financial Solutions and Gartner”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 | $7.48 billion | 2.70 | $1.12 billion | $9.62 | 18.57 |
| Gartner | $6.50 billion | 2.22 | $729.23 million | $11.15 | 20.46 |
Broadridge Financial Solutions has higher revenue and earnings than Gartner. Broadridge Financial Solutions is trading at a lower price-to-earnings ratio than Gartner, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Broadridge Financial Solutions and Gartner’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Broadridge Financial Solutions | 15.04% | 40.25% | 12.97% |
| Gartner | 11.99% | 525.46% | 13.45% |
Analyst Recommendations
This is a breakdown of current ratings for Broadridge Financial Solutions and Gartner, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Broadridge Financial Solutions | 0 | 4 | 4 | 0 | 2.50 |
| Gartner | 2 | 7 | 1 | 0 | 1.90 |
Broadridge Financial Solutions currently has a consensus target price of $216.00, suggesting a potential upside of 20.91%. Gartner has a consensus target price of $198.50, suggesting a potential downside of 13.00%. Given Broadridge Financial Solutions’ stronger consensus rating and higher possible upside, research analysts plainly believe Broadridge Financial Solutions is more favorable than Gartner.
Insider and Institutional Ownership
90.0% of Broadridge Financial Solutions shares are owned by institutional investors. Comparatively, 91.5% of Gartner shares are owned by institutional investors. 1.0% of Broadridge Financial Solutions shares are owned by company insiders. Comparatively, 2.6% of Gartner shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
Broadridge Financial Solutions has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Gartner has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
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 Gartner
Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network. The Consulting segment offers market-leading research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.
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