Head-To-Head Analysis: Verisk Analytics (NASDAQ:VRSK) versus NerdWallet (NASDAQ:NRDS)

Verisk Analytics (NASDAQ:VRSKGet Rating) and NerdWallet (NASDAQ:NRDSGet Rating) 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, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Risk & Volatility

Verisk Analytics has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, NerdWallet has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500.

Valuation and Earnings

This table compares Verisk Analytics and NerdWallet’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verisk Analytics $3.00 billion 9.47 $666.20 million $6.44 28.20
NerdWallet $379.60 million 2.05 -$42.50 million ($0.42) -24.90

Verisk Analytics has higher revenue and earnings than NerdWallet. NerdWallet is trading at a lower price-to-earnings ratio than Verisk Analytics, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

89.9% of Verisk Analytics shares are held by institutional investors. Comparatively, 31.2% of NerdWallet shares are held by institutional investors. 1.8% of Verisk Analytics shares are held by insiders. Comparatively, 49.6% of NerdWallet shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Verisk Analytics and NerdWallet, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verisk Analytics 2 3 7 0 2.42
NerdWallet 0 1 4 0 2.80

Verisk Analytics currently has a consensus target price of $196.36, indicating a potential upside of 8.12%. NerdWallet has a consensus target price of $14.25, indicating a potential upside of 36.23%. Given NerdWallet’s stronger consensus rating and higher probable upside, analysts clearly believe NerdWallet is more favorable than Verisk Analytics.

Profitability

This table compares Verisk Analytics and NerdWallet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verisk Analytics 34.12% 37.62% 12.22%
NerdWallet -5.44% -12.53% -8.73%

Summary

Verisk Analytics beats NerdWallet on 10 of the 14 factors compared between the two stocks.

About Verisk Analytics

(Get Rating)

Verisk Analytics, Inc. provides data analytics solutions in the United States and internationally. The company provides predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, global risk analytics, natural resources intelligence, economic forecasting, commercial banking and finance, and various other fields. It operates in three segments: Insurance, Energy and Specialized Markets, and Financial Services. The Insurance segment focuses on the prediction of loss, selection and pricing of risk, and compliance with their reporting requirements for property and casualty customers, as well as develops machine learned and artificially intelligent models to forecast scenarios and produce standard and customized analytics that help its customers to manage their businesses, including detecting fraud before and after a loss event, and quantifying losses. The Energy and Specialized Markets segment provides data analytics for the natural resources value chain, including energy, chemicals, metals, mining, power, and renewables sectors; research and consulting services focusing on supporting customer capital allocation decisions, asset valuation and benchmarking, commodity markets, and corporate analysis; and consultancy services in the areas of business environment, business improvement, business strategies, commercial advisory, and transaction support, as well as analysis and advice on assets, companies, governments, and markets. The Financial Services segment offers benchmarking, decisioning algorithms, business intelligence, and customized analytic services to financial institutions, payment networks and processors, alternative lenders, regulators, and merchants. The company was founded in 1971 and is headquartered in Jersey City, New Jersey.

About NerdWallet

(Get Rating)

NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers. The company's platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. It serves customers in the United States, the United Kingdom, and Canada. The company was founded in 2009 and is based in San Francisco, California.

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