Comparing OneConnect Financial Technology (NYSE:OCFT) & FactSet Research Systems (NYSE:FDS)

OneConnect Financial Technology (NYSE:OCFT) and FactSet Research Systems (NYSE:FDS) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Risk & Volatility

OneConnect Financial Technology has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, FactSet Research Systems has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Insider and Institutional Ownership

4.1% of OneConnect Financial Technology shares are owned by institutional investors. Comparatively, 91.2% of FactSet Research Systems shares are owned by institutional investors. 1.0% of FactSet Research Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares OneConnect Financial Technology and FactSet Research Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OneConnect Financial Technology	-1.09%	-8.09%	-3.19%
FactSet Research Systems	24.38%	34.77%	15.84%

Valuation and Earnings

This table compares OneConnect Financial Technology and FactSet Research Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneConnect Financial Technology	$3.25 billion	0.03	-$51.25 million	($0.13)	-19.92
FactSet Research Systems	$2.20 billion	7.84	$537.13 million	$13.90	32.65

FactSet Research Systems has lower revenue, but higher earnings than OneConnect Financial Technology. OneConnect Financial Technology is trading at a lower price-to-earnings ratio than FactSet Research Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for OneConnect Financial Technology and FactSet Research Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneConnect Financial Technology	0	0	1	0	3.00
FactSet Research Systems	5	9	0	0	1.64

OneConnect Financial Technology presently has a consensus price target of $7.00, suggesting a potential upside of 170.27%. FactSet Research Systems has a consensus price target of $443.57, suggesting a potential downside of 2.25%. Given OneConnect Financial Technology’s stronger consensus rating and higher possible upside, equities research analysts plainly believe OneConnect Financial Technology is more favorable than FactSet Research Systems.

Summary

FactSet Research Systems beats OneConnect Financial Technology on 10 of the 14 factors compared between the two stocks.

About OneConnect Financial Technology

OneConnect Financial Technology Co., Ltd. provides cloud-platform-based Fintech solutions, and online information and operating support services for financial institutions in the People's Republic of China. It operates in Technology Solutions and Virtual Bank Business segments. The company offers Gamma Platform, which offers a toolbox of separate solution modules that provide technology infrastructure and underlying technologies; marketing management platform, developed from AI Banker App, provides banks relationship managers with technology that supports in managing their acquisition and relationships with retail customers; and wealth management platform that provides banks with tools to enhance the efficiency of their wealth management business. It also provides intelligent product development platform for banks, which allows to shorten product development cycle, enhance speed to market, and facilitate product portfolio management; Regtech, an end-to-end regulatory solution for financial regulatory authorities; asset-liability management solution provides analytics to enhance financial institutions asset liquidity performance; and digital insurance solutions for digitalizing the insurance process, marketing, customer management, and claim processing under intelligent property and casualty insurance and life insurance solution. In addition, the company provides Gamma Voice Solution, an AI customer service for support customer service functions; and Gamma FinCloud, which allows entities with expensive-to-replace legacy systems to directly migrate to the cloud to securely maintain their data. Further, it offers information transmission, information technology advisory, E-commerce security certificate administration, technology promotion and computer application, software and technology, insurance survey and loss adjustment, and asset management and consulting services. The company was founded in 2015 and is headquartered in Shenzhen, the People's Republic of China.

About FactSet Research Systems

FactSet Research Systems Inc., a financial data company, provides integrated financial information and analytical applications to the investment community in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company delivers insight and information through the workflow solutions of research, analytics and trading, content and technology solutions, and wealth. It serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.