Equifax (NYSE:EFX) vs. Franklin Covey (NYSE:FC) Financial Contrast

Equifax (NYSE:EFX) and Franklin Covey (NYSE:FC) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Institutional and Insider Ownership

96.2% of Equifax shares are owned by institutional investors. Comparatively, 69.9% of Franklin Covey shares are owned by institutional investors. 1.7% of Equifax shares are owned by company insiders. Comparatively, 15.2% of Franklin Covey shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Equifax and Franklin Covey, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equifax	0	7	14	0	2.67
Franklin Covey	1	1	2	0	2.25

Equifax presently has a consensus price target of $200.55, suggesting a potential upside of 7.05%. Franklin Covey has a consensus price target of $27.50, suggesting a potential upside of 80.33%. Given Franklin Covey’s higher probable upside, analysts plainly believe Franklin Covey is more favorable than Equifax.

Volatility and Risk

Equifax has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Franklin Covey has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares Equifax and Franklin Covey”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equifax	$6.07 billion	3.61	$660.30 million	$6.19	30.27
Franklin Covey	$261.45 million	0.66	$3.07 million	$0.45	33.89

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

Profitability

This table compares Equifax and Franklin Covey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equifax	11.27%	22.48%	8.52%
Franklin Covey	1.88%	25.57%	5.52%

Summary

Equifax beats Franklin Covey on 10 of the 14 factors compared between the two stocks.

About Equifax

Equifax Inc. is a global data, analytics and technology company best known as one of the major consumer credit reporting agencies in the United States. The company traces its history to 1899, when it was founded as the Retail Credit Company, and adopted the Equifax name in 1975. Equifax provides consumer and business credit information, credit reports and scores, and tools for identity verification and fraud prevention. Its products also help businesses assess risk and make decisions about lending, customer relationships and marketing.

About Franklin Covey

Franklin Covey Co. (NYSE: FC) is a global professional-services and training company that helps organizations improve leadership, execution, productivity, sales performance and workplace culture. Its services are designed for businesses, government agencies and other institutions seeking to develop employees and improve organizational performance. The company provides consulting, training, coaching, assessment tools and digital learning solutions. Its offerings address areas such as leadership development, trust, change management, business execution, customer loyalty and individual effectiveness.