Experian (OTCMKTS:EXPGY) and Sandvik (OTCMKTS:SDVKY) are both large-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Analyst Recommendations
This is a summary of current recommendations and price targets for Experian and Sandvik, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Experian | 0 | 2 | 8 | 0 | 2.80 |
| Sandvik | 2 | 3 | 11 | 0 | 2.56 |
Valuation & Earnings
This table compares Experian and Sandvik’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Experian | $5.18 billion | 5.95 | $675.00 million | $1.02 | 32.91 |
| Sandvik | $10.92 billion | 3.11 | $903.43 million | $1.18 | 22.95 |
Sandvik has higher revenue and earnings than Experian. Sandvik is trading at a lower price-to-earnings ratio than Experian, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Experian and Sandvik’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Experian | N/A | N/A | N/A |
| Sandvik | 6.75% | 19.81% | 10.54% |
Risk and Volatility
Experian has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Sandvik has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.
Insider & Institutional Ownership
0.5% of Experian shares are held by institutional investors. Comparatively, 0.1% of Sandvik shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Sandvik beats Experian on 9 of the 12 factors compared between the two stocks.
Experian Company Profile
Experian plc, together with its subsidiaries, operates as a technology company. The company operates through two segments, Business-to-Business and Consumer Services. It provides data services to identify and understand their customers, as well as to manage the risks related with lending. The company also offers analytical and decision tools that enhance businesses to manage their customers, minimize the risk of fraud, comply with legal requirements, and automate decisions and processes. In addition, it provides financial education, free access to Experian credit reports and scores, online educational tools, and applications to manage their financial position, access credit offers, and protect themselves from identity fraud. The company serves customers in financial service, direct-to-consumer, health, retail, automotive, software and professional services, telecommunications and utility, insurance, media and technology, government and public, and other sectors. It operates in North America, Latin America, the United Kingdom, Ireland, Europe, the Middle East, Africa, and the Asia Pacific. Experian plc was formerly known as Experian Group Limited and changed its name to Experian plc in July 2008. Experian plc was founded in 1897 and is headquartered in Dublin, Ireland.
Sandvik Company Profile
Sandvik AB (publ) operates as an engineering company in the areas of mining and rock excavation, metal cutting, and materials technology worldwide. The company offers metal-cutting tools and tooling systems, including boring, drilling, milling, reaming, and turning tools, as well as tailor made tools and inserts, and tooling systems. It also provides mining and rock excavation equipment and tools, such as stationary and mobile crushers and screens, underground drill rigs and bolters, surface drill rigs, exploration drill rigs and tools, underground loaders and trucks, mechanical cutting equipment, rock tools and drills, mining automation systems, and parts and services, as well as breakers, demolition tools, and booms. In addition, the company offers stainless steels, special alloys, and titanium products comprising bar and hollow bars, billets and blooms, controlled expansion alloy products, hot isostatic pressed products, metal powders, plates and sheets, strip steels, and wire products, as well as tubes, pipes, fittings, and flanges; and technical services related to stainless steels and special alloys. Further, it offers advisory services for the additive manufacturing, additive manufacturing services, and powders for additive manufacturing; and diffusion furnaces, and furnace products and heating materials. The company serves aerospace, automotive, construction, general engineering, mining, nuclear power generation, oil and gas, process, and renewable energy industries. Sandvik AB (publ) was founded in 1862 and is headquartered in Stockholm, Sweden.