Analyzing IHS (IHS) and Its Peers

IHS (NYSE:IHS) is one of 203 public companies in the “Diversified Telecommunication Services” industry, but how does it compare to its competitors? We will compare IHS to similar companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

17.5% of IHS shares are owned by institutional investors. Comparatively, 32.7% of shares of all “Diversified Telecommunication Services” companies are owned by institutional investors. 19.2% of shares of all “Diversified Telecommunication Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

IHS has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, IHS’s competitors have a beta of 0.82, meaning that their average stock price is 18% less volatile than the S&P 500.

Earnings and Valuation

This table compares IHS and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
IHS	$1.65 billion	N/A	21.19
IHS Competitors	$10.03 billion	$323.89 million	-167.15

IHS’s competitors have higher revenue and earnings than IHS. IHS is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares IHS and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IHS	N/A	N/A	N/A
IHS Competitors	-49.71%	-144.74%	-5.71%

Analyst Recommendations

This is a breakdown of recent recommendations for IHS and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IHS	1	4	2	0	2.14
IHS Competitors	1724	5288	7647	381	2.44

IHS presently has a consensus target price of $8.80, indicating a potential upside of 3.83%. As a group, “Diversified Telecommunication Services” companies have a potential upside of 23.40%. Given IHS’s competitors stronger consensus rating and higher possible upside, analysts clearly believe IHS has less favorable growth aspects than its competitors.

Summary

IHS competitors beat IHS on 8 of the 12 factors compared.

About IHS

IHS Inc. develops source of information, insight and analytics in different areas of business. The Company’s segments include Resources, Transportation and Consolidated Markets & Solutions. The Company’s Resources segment includes its Energy and Chemicals product offerings. Its Transportation segment includes its Automotive; Maritime & Trade, and Aerospace, Defense & Security product offerings. Its Consolidated Markets & Solutions segment includes its Product Design; Technology, Media & Telecom, and Economics & Country Risk product offerings. It provides authoritative analysis and forecasts of sales and production for light vehicles, medium and heavy commercial vehicles, powertrain, components and technology systems across various markets. Its product design offerings include content and analysis on various engineering and technical standards, codes, reference books, journals, and other scientific and technical documents, as well as software-based engineering decision engines.