Chinanet Online (NASDAQ:CNET) and FactSet Research Systems (NASDAQ:FDS) Critical Survey

Chinanet Online (NASDAQ:CNET) and FactSet Research Systems (NYSE:FDS) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Risk and Volatility

Chinanet Online has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500. Comparatively, FactSet Research Systems has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Institutional & Insider Ownership

0.8% of Chinanet Online shares are owned by institutional investors. Comparatively, 93.8% of FactSet Research Systems shares are owned by institutional investors. 34.5% of Chinanet Online shares are owned by insiders. Comparatively, 2.3% of FactSet Research Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Chinanet Online and FactSet Research Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chinanet Online -2.17% -15.39% -7.50%
FactSet Research Systems 25.45% 59.11% 23.88%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Chinanet Online and FactSet Research Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chinanet Online 0 0 0 0 N/A
FactSet Research Systems 4 10 0 0 1.71

FactSet Research Systems has a consensus target price of $273.42, suggesting a potential downside of 16.34%. Given FactSet Research Systems’ higher possible upside, analysts clearly believe FactSet Research Systems is more favorable than Chinanet Online.

Earnings & Valuation

This table compares Chinanet Online and FactSet Research Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chinanet Online $58.08 million 0.37 -$1.26 million N/A N/A
FactSet Research Systems $1.44 billion 8.62 $352.79 million $10.00 32.68

FactSet Research Systems has higher revenue and earnings than Chinanet Online.

Summary

FactSet Research Systems beats Chinanet Online on 9 of the 11 factors compared between the two stocks.

About Chinanet Online

ChinaNet Online Holdings, Inc., through its subsidiaries, operates an integrated service platform that provides advertising and marketing services in the People's Republic of China. Its platform comprises CloundX, an omni-channel advertising and marketing system; and a data analysis management system. The company offers Internet advertising, precision marketing, and related data and value added services through its Internet advertising portals, including 28.com; and liansuo.com. It also produces and distributes television shows comprising advertisements. The company serves customers in the food and beverage, women accessories, footwear, apparel and garments, home goods and construction materials, environmental protection equipment, cosmetic and health care, education network, and other industries. ChinaNet Online Holdings, Inc. was founded in 2003 and is based in Beijing, the People's Republic of China.

About FactSet Research Systems

FactSet Research Systems Inc. provides integrated financial information and analytical applications to the investment community in the United States, Europe, and the Asia Pacific. The company delivers insight and information to financial investment professionals through its analytics, services, contents, and technologies. Its applications suite offers tools and resources, including company and industry analyses, full screening tools, portfolio analysis, risk profiles, alpha-testing, portfolio optimization, and research management solutions. The company enables its clients to streamline real-time data and historical information comprising quotes, estimates, news, and commentary, as well as provides proprietary and third-party content through desktop, Web, mobile, and off-platform solutions. It serves portfolio managers, investment research professionals, investment bankers, risk and performance analysts, and wealth advisors. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.

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