Critical Review: Verisk Analytics (VRSK) and Its Competitors

Verisk Analytics (NASDAQ: VRSK) is one of 60 public companies in the “Data processing & preparation” industry, but how does it weigh in compared to its rivals? We will compare Verisk Analytics to related companies based on the strength of its earnings, dividends, institutional ownership, valuation, profitability, risk and analyst recommendations.

Profitability

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This table compares Verisk Analytics and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verisk Analytics 25.88% 33.58% 10.17%
Verisk Analytics Competitors -49.67% -54.76% -9.12%

Analyst Recommendations

This is a summary of recent ratings for Verisk Analytics and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verisk Analytics 0 6 7 0 2.54
Verisk Analytics Competitors 311 1479 2155 61 2.49

Verisk Analytics presently has a consensus price target of $104.54, indicating a potential upside of 0.52%. As a group, “Data processing & preparation” companies have a potential upside of 5.51%. Given Verisk Analytics’ rivals higher probable upside, analysts plainly believe Verisk Analytics has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

92.5% of Verisk Analytics shares are held by institutional investors. Comparatively, 55.9% of shares of all “Data processing & preparation” companies are held by institutional investors. 3.4% of Verisk Analytics shares are held by insiders. Comparatively, 22.1% of shares of all “Data processing & preparation” companies 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.

Earnings & Valuation

This table compares Verisk Analytics and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Verisk Analytics $2.15 billion $555.10 million 32.40
Verisk Analytics Competitors $950.77 million $42.14 million 22.59

Verisk Analytics has higher revenue and earnings than its rivals. Verisk Analytics is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Verisk Analytics has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Verisk Analytics’ rivals have a beta of 0.53, suggesting that their average stock price is 47% less volatile than the S&P 500.

Summary

Verisk Analytics beats its rivals on 10 of the 13 factors compared.

Verisk Analytics Company Profile

Verisk Analytics, Inc. provides data analytics solutions for customers in the insurance, energy, and financial markets in the United States and internationally. Its Decision Analytics segment develops predictive models to forecast scenarios, and produce standard and customized analytics for predicting loss, selecting and pricing risk, detecting fraud before and after a loss event, and quantifying losses. It provides fraud-detection tools for the property and casualty (P&C) insurance industry; data analytics for energy, chemicals, and metals and mining industries; and data and information services that enable enhanced compliance with environmental health and safety, as well as helps businesses and governments to anticipate and manage climate-and weather-related risks. The company's Risk Assessment segment offers solutions to P&C insurance customers and focuses on prediction of loss, and selection and pricing of risk. Its solutions include industry-standard insurance programs that help P&C insurers in defining coverage and issue policies; actuarial services to help its customers analyze and price their risks; and customized services that include assisting with the development of independent insurance programs, analysis of their own underwriting experience, development of classification systems and rating plans, and other business decisions, as well as supplies information to various customers in other markets. This segment's solutions also comprise property-specific rating and underwriting information on properties, businesses, and communities to evaluate, price, and process commercial insurance applications, including property, auto, general liability, business owner's policy, and workers compensation. The company was founded in 1971 and is headquartered in Jersey City, New Jersey.

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