Contrasting Relx (NYSE:RELX) & Lyft (NASDAQ:LYFT)

Relx (NYSE:RELXGet Rating) and Lyft (NASDAQ:LYFTGet Rating) are both large-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Institutional & Insider Ownership

15.5% of Relx shares are held by institutional investors. Comparatively, 80.4% of Lyft shares are held by institutional investors. 5.8% of Lyft shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Relx and Lyft, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Relx 0 1 9 0 2.90
Lyft 0 9 18 0 2.67

Lyft has a consensus price target of $59.46, suggesting a potential upside of 79.32%. Given Lyft’s higher possible upside, analysts plainly believe Lyft is more favorable than Relx.

Profitability

This table compares Relx and Lyft’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Relx N/A N/A N/A
Lyft -31.46% -57.94% -17.50%

Earnings and Valuation

This table compares Relx and Lyft’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Relx $9.96 billion 5.92 $2.02 billion N/A N/A
Lyft $3.21 billion 3.60 -$1.01 billion ($3.03) -10.94

Relx has higher revenue and earnings than Lyft.

Risk and Volatility

Relx has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Lyft has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.

Summary

Relx beats Lyft on 7 of the 12 factors compared between the two stocks.

About Relx (Get Rating)

RELX PLC provides information-based analytics and decision tools for professional and business customers in North America, Europe, and internationally. It operates through four segments: Risk; Scientific, Technical & Medical; Legal; and Exhibitions. The Risk segment offers information-based analytics and decision tools that combine public and industry specific content with technology and algorithms to assist clients in evaluating and predicting risk. The Scientific, Technical & Medical segment provides information and analytics that help institutions and professionals to progress in science and advance healthcare. The Legal segment provides legal, regulatory, and business information and analytics that help customers in decision-making, as well as increases the productivity. The Exhibitions segment is involved in the events business that combines face-to-face with data and digital tools to help customers learn about markets, source products, and complete transactions. The company was formerly known as Reed Elsevier PLC and changed its name to RELX PLC in July 2015. The company was incorporated in 1903 and is headquartered in London, the United Kingdom.

About Lyft (Get Rating)

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. The company operates multimodal transportation networks that offer riders personalized and on-demand access to various mobility options. It provides Ridesharing Marketplace, which connects drivers with riders; Express Drive, a flexible car rentals program for drivers; Lyft Rentals that provides vehicles for long-distance trips; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. The company also integrates third-party public transit data into the Lyft app to offer riders various transportation options. In addition, it offers access to autonomous vehicles; centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

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