Reviewing ASX (OTCMKTS:ASXFY) & FactSet Research Systems (NYSE:FDS)

ASX (OTCMKTS:ASXFY) and FactSet Research Systems (NYSE:FDS) are both financial services companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Insider and Institutional Ownership

91.2% of FactSet Research Systems shares are owned by institutional investors. 1.0% of FactSet Research Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ASX and FactSet Research Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASX	0	0	0	0	N/A
FactSet Research Systems	4	8	0	0	1.67

FactSet Research Systems has a consensus price target of $432.27, suggesting a potential upside of 5.21%. Given FactSet Research Systems’ higher probable upside, analysts clearly believe FactSet Research Systems is more favorable than ASX.

Dividends

ASX pays an annual dividend of $1.66 per share and has a dividend yield of 3.9%. FactSet Research Systems pays an annual dividend of $4.16 per share and has a dividend yield of 1.0%. ASX pays out 83.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FactSet Research Systems pays out 31.4% of its earnings in the form of a dividend. FactSet Research Systems has raised its dividend for 26 consecutive years.

Valuation & Earnings

This table compares ASX and FactSet Research Systems’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASX	N/A	N/A	N/A	$1.99	21.66
FactSet Research Systems	$2.18 billion	7.18	$468.17 million	$13.26	30.99

FactSet Research Systems has higher revenue and earnings than ASX. ASX is trading at a lower price-to-earnings ratio than FactSet Research Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ASX and FactSet Research Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ASX	N/A	N/A	N/A
FactSet Research Systems	23.56%	34.48%	15.17%

Summary

FactSet Research Systems beats ASX on 11 of the 12 factors compared between the two stocks.

About ASX

ASX Limited operates as a multi-asset class and integrated exchange company in Australia and internationally. The company provides education programs, research and insights, investor access and peer group networking; distribution facility for quoted exchange traded funds (ETFs) and debt securities. It is also involved in the trading of futures and options on interest rate, equity index, agriculture and energy products, and options over individual securities; cash market trading of equities, warrants, exchange-traded funds, and debt securities; and clearing of exchange-traded derivatives and over-the-counter interest rate and equity derivatives. In addition, it offers information services, including pricing and trading data; technical services, such as s market access, connectivity, hosting and co-location services; central counterparty clearing and settlement services for equities; settlement, depository, and registry services for debt securities; and payment platform for property transactions, high value payments and electricity providers. The company was incorporated in 1987 and is based in Sydney, Australia.

About FactSet Research Systems

FactSet Research Systems Inc., a financial data company, provides integrated financial information and analytical applications to the investment community in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company delivers insight and information through the workflow solutions of research, analytics and trading, content and technology solutions, and wealth. It serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.