Contrasting Thomson Reuters (NASDAQ:TRI) and Alight (NYSE:ALIT)

Thomson Reuters (NASDAQ:TRI) and Alight (NYSE:ALIT) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Earnings and Valuation

This table compares Thomson Reuters and Alight”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thomson Reuters	$7.83 billion	5.48	$1.50 billion	$3.76	26.33
Alight	$2.26 billion	0.13	-$3.10 billion	($77.18)	-0.14

Thomson Reuters has higher revenue and earnings than Alight. Alight is trading at a lower price-to-earnings ratio than Thomson Reuters, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Thomson Reuters has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Alight has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Institutional and Insider Ownership

17.3% of Thomson Reuters shares are owned by institutional investors. Comparatively, 96.7% of Alight shares are owned by institutional investors. 2.1% of Alight shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Thomson Reuters and Alight, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thomson Reuters	0	6	10	1	2.71
Alight	2	3	3	0	2.12

Thomson Reuters currently has a consensus target price of $131.57, suggesting a potential upside of 32.91%. Alight has a consensus target price of $49.33, suggesting a potential upside of 346.33%. Given Alight’s higher probable upside, analysts clearly believe Alight is more favorable than Thomson Reuters.

Profitability

This table compares Thomson Reuters and Alight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thomson Reuters	21.22%	15.82%	10.27%
Alight	-90.90%	16.05%	4.38%

Summary

Thomson Reuters beats Alight on 10 of the 15 factors compared between the two stocks.

About Thomson Reuters

Thomson Reuters Corporation provides business information services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in five segments: Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print. The Legal Professionals segment offers research and workflow products focusing on legal research and integrated legal workflow solutions that combine content, tools, and analytics to law firms and governments. The Corporates segment provides a suite of content-enabled technology solutions for legal, tax, regulatory, compliance, and IT professionals. The Tax & Accounting Professionals segment offers research and workflow products focusing on tax offerings and automating tax workflows to tax, accounting, and audit professionals in accounting firms. The Reuters News segment provides business, financial, and international news to media organizations, professional, and news consumers through news agency and industry events. The Global Print segment offers legal and tax information primarily in print format to legal and tax professionals, governments, law schools, and corporations. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. The company was founded in 1851 and is headquartered in Toronto, Canada. Thomson Reuters Corporation is a subsidiary of The Woodbridge Company Limited.

About Alight

Alight, Inc. provides cloud-based integrated digital human capital and business solutions worldwide. The company operates through two segments, Employer Solutions and Professional Services. The Employer Solutions segment offers employee wellbeing, integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, retiree healthcare and payroll; and operates AI-led capabilities software. The Professional Services segment offers consulting offerings, such as cloud advisory, deployment, and optimization services for cloud platforms. The company provides Alight Worklife, an intuitive, cloud-based employee engagement platform. Its solutions enable employees to enrich their health, wealth, and wellbeing that helps organizations achieve a high-performance culture. Alight, Inc. was founded in 2020 and is based in Lincolnshire, Illinois.