Analyzing Broadridge Financial Solutions (NYSE:BR) & TEMENOS GROUP (OTCMKTS:TMSNY)

Broadridge Financial Solutions (NYSE:BR) and TEMENOS GROUP (OTCMKTS:TMSNY) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider and Institutional Ownership

90.0% of Broadridge Financial Solutions shares are held by institutional investors. 1.1% of Broadridge Financial Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Broadridge Financial Solutions and TEMENOS GROUP”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadridge Financial Solutions	$6.89 billion	3.88	$839.50 million	$7.09	32.30
TEMENOS GROUP	$1.04 billion	5.36	$177.18 million	N/A	N/A

Broadridge Financial Solutions has higher revenue and earnings than TEMENOS GROUP.

Volatility & Risk

Broadridge Financial Solutions has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, TEMENOS GROUP has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Profitability

This table compares Broadridge Financial Solutions and TEMENOS GROUP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadridge Financial Solutions	12.19%	42.72%	12.23%
TEMENOS GROUP	27.83%	50.21%	13.01%

Dividends

Broadridge Financial Solutions pays an annual dividend of $3.90 per share and has a dividend yield of 1.7%. TEMENOS GROUP pays an annual dividend of $0.96 per share and has a dividend yield of 1.2%. Broadridge Financial Solutions pays out 55.0% of its earnings in the form of a dividend. Broadridge Financial Solutions has raised its dividend for 18 consecutive years. Broadridge Financial Solutions is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations for Broadridge Financial Solutions and TEMENOS GROUP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadridge Financial Solutions	0	5	3	0	2.38
TEMENOS GROUP	0	2	0	0	2.00

Broadridge Financial Solutions presently has a consensus price target of $261.50, indicating a potential upside of 14.21%. Given Broadridge Financial Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Broadridge Financial Solutions is more favorable than TEMENOS GROUP.

Summary

Broadridge Financial Solutions beats TEMENOS GROUP on 10 of the 15 factors compared between the two stocks.

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 TEMENOS GROUP

Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide. Its Temenos Banking Cloud helps banks to offer open banking services. The company provides Temenos Infinity, a digital banking platform; Temenos Transact, a core banking software for retail, corporate, treasury, wealth, and payments; Temenos Payments, a software-as-a-service payments technology; Temenos Multifonds, a platform for traditional and alternative funds, as well as offers key asset servicing, position keeping, valuation and accounting functions for various structures of pooled vehicles and funds; Temenos Multifonds Navigator, a net asset value shadow, oversight, and contingency solution; and Temenos Quantum, a multi-experience development platform. It also offers Temenos XAI that enables banks to provide individualized customer experiences, drive customer loyalty and profitability, and automate processes; Temenos Financial Crime Mitigation that allows banks and financial institutions to avoid regulatory fines, detect fraud, and mitigate reputational risks; Temenos Analytics, a reporting, analytics, and business intelligence product; Temenos Regulatory Compliance for addressing fraud, remaining compliant with regulations, and managing risks; Temenos Wealth, an integrated portfolio management and securities trading platform for wealth managers and private bankers; and Temenos DataSource, an enterprise data management solution. In addition, it provides various solutions for retail, business, universal, central, Islamic, corporate, and private banking; life and pension; challenger banks and fintechs; wealth management; credit unions; financial inclusion; and asset managers and asset services. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. The company was founded in 1993 and is based in Geneva, Switzerland.