Grab (NASDAQ:GRAB – Get Free Report) and Broadridge Financial Solutions (NYSE:BR – Get Free Report) are both large-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Insider & Institutional Ownership
55.5% of Grab shares are held by institutional investors. Comparatively, 90.0% of Broadridge Financial Solutions shares are held by institutional investors. 3.6% of Grab shares are held by insiders. Comparatively, 1.6% of Broadridge Financial Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings for Grab and Broadridge Financial Solutions, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grab | 0 | 0 | 6 | 0 | 3.00 |
| Broadridge Financial Solutions | 0 | 4 | 3 | 0 | 2.43 |
Risk and Volatility
Grab has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Broadridge Financial Solutions has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.
Profitability
This table compares Grab and Broadridge Financial Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grab | -18.43% | -6.77% | -5.10% |
| Broadridge Financial Solutions | 10.82% | 41.12% | 10.58% |
Earnings and Valuation
This table compares Grab and Broadridge Financial Solutions’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grab | $2.36 billion | 5.64 | -$434.00 million | ($0.10) | -33.90 |
| Broadridge Financial Solutions | $6.06 billion | 3.75 | $630.60 million | $5.74 | 33.62 |
Broadridge Financial Solutions has higher revenue and earnings than Grab. Grab is trading at a lower price-to-earnings ratio than Broadridge Financial Solutions, indicating that it is currently the more affordable of the two stocks.
Summary
Broadridge Financial Solutions beats Grab on 9 of the 14 factors compared between the two stocks.
About Grab
Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. The company is headquartered in Singapore.
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.
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