FactSet Research Systems (NYSE:FDS – Get Free Report) and OneConnect Financial Technology (NYSE:OCFT – Get Free Report) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.
Risk & Volatility
FactSet Research Systems has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, OneConnect Financial Technology has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.
Valuation & Earnings
This table compares FactSet Research Systems and OneConnect Financial Technology”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FactSet Research Systems | $2.20 billion | 7.93 | $537.13 million | $13.90 | 33.05 |
| OneConnect Financial Technology | $518.92 million | 0.20 | -$51.25 million | ($0.13) | -20.15 |
Profitability
This table compares FactSet Research Systems and OneConnect Financial Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FactSet Research Systems | 24.38% | 34.77% | 15.84% |
| OneConnect Financial Technology | -1.09% | -8.09% | -3.19% |
Insider and Institutional Ownership
91.2% of FactSet Research Systems shares are owned by institutional investors. Comparatively, 4.1% of OneConnect Financial Technology shares are owned by institutional investors. 1.0% of FactSet Research Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for FactSet Research Systems and OneConnect Financial Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FactSet Research Systems | 5 | 9 | 0 | 0 | 1.64 |
| OneConnect Financial Technology | 0 | 0 | 1 | 0 | 3.00 |
FactSet Research Systems presently has a consensus target price of $443.57, suggesting a potential downside of 3.08%. OneConnect Financial Technology has a consensus target price of $7.00, suggesting a potential upside of 167.18%. Given OneConnect Financial Technology’s stronger consensus rating and higher possible upside, analysts plainly believe OneConnect Financial Technology is more favorable than FactSet Research Systems.
Summary
FactSet Research Systems beats OneConnect Financial Technology on 10 of the 13 factors compared between the two stocks.
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.
About OneConnect Financial Technology
OneConnect Financial Technology Co., Ltd. provides cloud-platform-based Fintech solutions, and online information and operating support services for financial institutions in the People's Republic of China. It operates in Technology Solutions and Virtual Bank Business segments. The company offers Gamma Platform, which offers a toolbox of separate solution modules that provide technology infrastructure and underlying technologies; marketing management platform, developed from AI Banker App, provides banks relationship managers with technology that supports in managing their acquisition and relationships with retail customers; and wealth management platform that provides banks with tools to enhance the efficiency of their wealth management business. It also provides intelligent product development platform for banks, which allows to shorten product development cycle, enhance speed to market, and facilitate product portfolio management; Regtech, an end-to-end regulatory solution for financial regulatory authorities; asset-liability management solution provides analytics to enhance financial institutions asset liquidity performance; and digital insurance solutions for digitalizing the insurance process, marketing, customer management, and claim processing under intelligent property and casualty insurance and life insurance solution. In addition, the company provides Gamma Voice Solution, an AI customer service for support customer service functions; and Gamma FinCloud, which allows entities with expensive-to-replace legacy systems to directly migrate to the cloud to securely maintain their data. Further, it offers information transmission, information technology advisory, E-commerce security certificate administration, technology promotion and computer application, software and technology, insurance survey and loss adjustment, and asset management and consulting services. The company was founded in 2015 and is headquartered in Shenzhen, the People's Republic of China.
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