Dun & Bradstreet (NYSE:DNB) versus London Stock Exchange Group (OTCMKTS:LDNXF) Financial Contrast

Dun & Bradstreet (NYSE:DNB) and London Stock Exchange Group (OTCMKTS:LDNXF) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Institutional & Insider Ownership

86.7% of Dun & Bradstreet shares are held by institutional investors. Comparatively, 29.8% of London Stock Exchange Group shares are held by institutional investors. 10.0% of Dun & Bradstreet shares are held by company 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.

Profitability

This table compares Dun & Bradstreet and London Stock Exchange Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dun & Bradstreet	-2.03%	10.65%	3.98%
London Stock Exchange Group	N/A	N/A	N/A

Dividends

Dun & Bradstreet pays an annual dividend of $0.20 per share and has a dividend yield of 2.1%. London Stock Exchange Group pays an annual dividend of $0.28 per share and has a dividend yield of 0.2%. Dun & Bradstreet pays out -181.8% of its earnings in the form of a dividend. London Stock Exchange Group pays out 51.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dun & Bradstreet is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Dun & Bradstreet and London Stock Exchange Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dun & Bradstreet	$2.31 billion	1.79	-$47.00 million	($0.11)	-85.64
London Stock Exchange Group	N/A	N/A	N/A	$0.55	210.24

London Stock Exchange Group has lower revenue, but higher earnings than Dun & Bradstreet. Dun & Bradstreet is trading at a lower price-to-earnings ratio than London Stock Exchange Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Dun & Bradstreet and London Stock Exchange Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dun & Bradstreet	0	3	3	1	2.71
London Stock Exchange Group	0	0	0	0	N/A

Dun & Bradstreet presently has a consensus price target of $13.64, indicating a potential upside of 44.83%. Given Dun & Bradstreet’s higher probable upside, equities analysts clearly believe Dun & Bradstreet is more favorable than London Stock Exchange Group.

Summary

Dun & Bradstreet beats London Stock Exchange Group on 10 of the 13 factors compared between the two stocks.

About Dun & Bradstreet

Dun & Bradstreet Holdings, Inc., together with its subsidiaries, provides business-to-business data and analytics in North America and internationally. It offers finance and risk solutions, including D&B Finance Analytics, an online application that offers clients real time access to its information, comprehensive monitoring, and portfolio analysis; D&B Direct, an application programming interface (API) that delivers risk and financial data directly into enterprise applications for real-time credit decision-making; D&B Small Business, a suite of tools that allows SMBs to monitor and build their business credit file; D&B Enterprise Risk Assessment Manager, a solution for managing and automating credit decisioning and reporting; and D&B Risk Analytics, a subscription-based online application that offers clients real-time access to complete and up-to-date global information to mitigate supply chain risk, regulatory risk, and ESG assessment, as well as other related risks; Risk Guardian, a subscription-based online application that offers real-time access to Northern Europe information, monitoring, and portfolio analysis; and D&B Beneficial Ownership that offers risk intelligence on ultimate beneficial ownership. The company also provides sales and marketing solutions, including D&B Connect, a self-service data management platform; D&B Optimizer, an integrated data management solution; D&B Rev.Up ABX, an open and agnostic platform that aligns marketing and sales teams to deliver an optimal and coordinated buying; D&B Hoovers, a sales intelligence solution; D&B Audience Targeting, which helps clients to reach the right audiences with the right messages; D&B Visitor Intelligence that turns web visitors into leads; D&B Direct, an API-enabled data management solution; and InfoTorg, an online SaaS application that provides information services. Dun & Bradstreet Holdings, Inc. was founded in 1841 and is headquartered in Jacksonville, Florida.

About London Stock Exchange Group

London Stock Exchange Group plc operates as a financial markets infrastructure and data provider primarily in the United Kingdom and internationally. The company operates in three segments: Data & Analytics, Capital Markets, and Post Trade. It operates a range of international equity, fixed income, exchange-traded funds/exchange-traded products, and foreign exchange markets through the London Stock Exchange, AIM, Turquoise, FXall, Matching, and Tradeweb. The company also provides information and data products, such as indexes, benchmarks, real time pricing data and trade reporting, and reconciliation services, as well as network connection and services; market trading services; and clearing, risk management, capital optimization, and regulatory reporting solutions. In addition, it licenses capital markets; installs software; and provides maintenance, and events and media services. The company was founded in 1698 and is headquartered in London, the United Kingdom.