London Stock Exchange Group (OTCMKTS:LDNXF) & Dun & Bradstreet (NYSE:DNB) Head-To-Head Review

London Stock Exchange Group (OTCMKTS:LDNXF) and Dun & Bradstreet (NYSE:DNB) are both financial services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Dividends

London Stock Exchange Group pays an annual dividend of $0.28 per share and has a dividend yield of 0.2%. Dun & Bradstreet pays an annual dividend of $0.20 per share and has a dividend yield of 2.2%. London Stock Exchange Group pays out 51.3% of its earnings in the form of a dividend. Dun & Bradstreet pays out -181.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dun & Bradstreet is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

29.8% of London Stock Exchange Group shares are held by institutional investors. Comparatively, 86.7% of Dun & Bradstreet shares are held by institutional investors. 10.0% of Dun & Bradstreet shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares London Stock Exchange Group and Dun & Bradstreet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
London Stock Exchange Group	N/A	N/A	N/A
Dun & Bradstreet	-2.03%	10.65%	3.98%

Analyst Ratings

This is a breakdown of recent recommendations for London Stock Exchange Group and Dun & Bradstreet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
London Stock Exchange Group	0	0	0	0	N/A
Dun & Bradstreet	0	3	3	1	2.71

Dun & Bradstreet has a consensus target price of $13.64, indicating a potential upside of 49.18%. Given Dun & Bradstreet’s higher probable upside, analysts plainly believe Dun & Bradstreet is more favorable than London Stock Exchange Group.

Earnings and Valuation

This table compares London Stock Exchange Group and Dun & Bradstreet’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
London Stock Exchange Group	N/A	N/A	N/A	$0.55	206.86
Dun & Bradstreet	$2.31 billion	1.73	-$47.00 million	($0.11)	-83.14

London Stock Exchange Group has higher earnings, but lower revenue than Dun & Bradstreet. Dun & Bradstreet is trading at a lower price-to-earnings ratio than London Stock Exchange Group, indicating that it is currently the more affordable of the two stocks.

Summary

Dun & Bradstreet beats London Stock Exchange Group on 10 of the 13 factors compared between the two stocks.

About London Stock Exchange Group

London Stock Exchange Group plc operates as a financial markets infrastructure and data provider primarily in the United Kingdom and internationally. The company operates in three segments: Data & Analytics, Capital Markets, and Post Trade. It operates a range of international equity, fixed income, exchange-traded funds/exchange-traded products, and foreign exchange markets through the London Stock Exchange, AIM, Turquoise, FXall, Matching, and Tradeweb. The company also provides information and data products, such as indexes, benchmarks, real time pricing data and trade reporting, and reconciliation services, as well as network connection and services; market trading services; and clearing, risk management, capital optimization, and regulatory reporting solutions. In addition, it licenses capital markets; installs software; and provides maintenance, and events and media services. The company was founded in 1698 and is headquartered in London, the United Kingdom.

About Dun & Bradstreet

Dun & Bradstreet Holdings, Inc., together with its subsidiaries, provides business-to-business data and analytics in North America and internationally. It offers finance and risk solutions, including D&B Finance Analytics, an online application that offers clients real time access to its information, comprehensive monitoring, and portfolio analysis; D&B Direct, an application programming interface (API) that delivers risk and financial data directly into enterprise applications for real-time credit decision-making; D&B Small Business, a suite of tools that allows SMBs to monitor and build their business credit file; D&B Enterprise Risk Assessment Manager, a solution for managing and automating credit decisioning and reporting; and D&B Risk Analytics, a subscription-based online application that offers clients real-time access to complete and up-to-date global information to mitigate supply chain risk, regulatory risk, and ESG assessment, as well as other related risks; Risk Guardian, a subscription-based online application that offers real-time access to Northern Europe information, monitoring, and portfolio analysis; and D&B Beneficial Ownership that offers risk intelligence on ultimate beneficial ownership. The company also provides sales and marketing solutions, including D&B Connect, a self-service data management platform; D&B Optimizer, an integrated data management solution; D&B Rev.Up ABX, an open and agnostic platform that aligns marketing and sales teams to deliver an optimal and coordinated buying; D&B Hoovers, a sales intelligence solution; D&B Audience Targeting, which helps clients to reach the right audiences with the right messages; D&B Visitor Intelligence that turns web visitors into leads; D&B Direct, an API-enabled data management solution; and InfoTorg, an online SaaS application that provides information services. Dun & Bradstreet Holdings, Inc. was founded in 1841 and is headquartered in Jacksonville, Florida.