Euronext (OTCMKTS:EUXTF – Get Free Report) and MSCI (NYSE:MSCI – Get Free Report) are both financial services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Euronext and MSCI, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Euronext | 1 | 3 | 2 | 0 | 2.17 |
| MSCI | 2 | 5 | 7 | 0 | 2.36 |
MSCI has a consensus price target of $565.20, suggesting a potential upside of 10.14%. Given MSCI’s stronger consensus rating and higher possible upside, analysts plainly believe MSCI is more favorable than Euronext.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Euronext | N/A | N/A | N/A |
| MSCI | 39.02% | -93.06% | 19.85% |
Valuation & Earnings
This table compares Euronext and MSCI’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Euronext | N/A | N/A | N/A | $0.91 | 74.95 |
| MSCI | $2.25 billion | 18.05 | $870.57 million | $11.41 | 44.97 |
MSCI has higher revenue and earnings than Euronext. MSCI is trading at a lower price-to-earnings ratio than Euronext, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
88.6% of MSCI shares are held by institutional investors. 3.1% of MSCI shares are held 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.
Summary
MSCI beats Euronext on 9 of the 11 factors compared between the two stocks.
About Euronext
Euronext N.V., together with its subsidiaries, operates securities and derivatives exchanges in Continental Europe, Ireland, and Norway. The company offers a range of exchange and corporate services, including security listings, cash and derivatives trading, and market data dissemination. It also provides listing venues and cash equities trading venues; and various marketplaces, including multilateral trading facilities for investors, broker-dealers, and other market participants to meet directly to buy and sell cash equities, fixed income securities, and exchange traded products. In addition, the company offers options contracts based on the blue-chip equities listed on Euronext; commodity derivatives, such as milling wheat futures contracts; and post-trade services, as well as distributes and sells real-time, historic, and reference data to data vendors, and financial institutions and individual investors. Further, it provides equity, debt, fund and ETF listing, corporate and investor, cash trading, foreign exchange trading, derivatives trading, fixed income trading, and power trading services. Additionally, the company offers technology solutions and services to exchanges, venue operators, and financial institutions; colocation, network and proximity services; and regulatory reporting services. The company was formerly known as Euronext Group N.V. and changed its name to Euronext N.V. in May 2014. Euronext N.V. was founded in 2000 and is headquartered in Amsterdam, the Netherlands.
About MSCI
MSCI Inc., together with its subsidiaries, provides investment decision support tools for the clients to manage their investment processes worldwide. It operates through four segments: Index, Analytics, ESG and Climate, and All Other Private Assets. The Index segment provides indexes for use in various areas of the investment process, including indexed product creation, such as ETFs, mutual funds, annuities, futures, options, structured products, over-the-counter derivatives; performance benchmarking; portfolio construction and rebalancing; and asset allocation, as well as licenses GICS and GICS Direct. The Analytics segment offers risk management, performance attribution and portfolio management content, application, and service that provides an integrated view of risk and return, and an analysis of market, credit, liquidity, and counterparty risk across asset classes; managed services, including consolidation of client portfolio data from various sources, review and reconciliation of input data and results, and customized reporting; and HedgePlatform to measure, evaluate, and monitor the risk of hedge fund investments. The ESG and Climate segment provides products and services that help institutional investors understand how ESG factors impact the long-term risk and return of their portfolio and individual security-level investments; and data, ratings, research, and tools to help investors navigate increasing regulation. The All Other Private Assets segment includes real estate market and transaction data, benchmarks, return-analytics, climate assessments and market insights for funds, investors, and managers; business intelligence to real estate owners, managers, developers, and brokers; and offers investment decision support tools for private capital. It serves asset owners and managers, financial intermediaries, wealth managers, real estate professionals, and corporates. MSCI Inc. was incorporated in 1998 and is headquartered in New York, New York.
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