Analyzing MarketWise (NASDAQ:MKTW) and Dun & Bradstreet (NYSE:DNB)

MarketWise (NASDAQ:MKTW) and Dun & Bradstreet (NYSE:DNB) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Risk and Volatility

MarketWise has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Dun & Bradstreet has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Earnings and Valuation

This table compares MarketWise and Dun & Bradstreet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MarketWise	$432.34 million	0.43	$1.78 million	$0.08	7.41
Dun & Bradstreet	$2.38 billion	2.21	-$47.00 million	($0.08)	-148.88

MarketWise has higher earnings, but lower revenue than Dun & Bradstreet. Dun & Bradstreet is trading at a lower price-to-earnings ratio than MarketWise, indicating that it is currently the more affordable of the two stocks.

Dividends

MarketWise pays an annual dividend of $0.04 per share and has a dividend yield of 6.7%. Dun & Bradstreet pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. MarketWise pays out 50.0% of its earnings in the form of a dividend. Dun & Bradstreet pays out -250.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional and Insider Ownership

23.0% of MarketWise shares are held by institutional investors. Comparatively, 86.7% of Dun & Bradstreet shares are held by institutional investors. 28.6% of MarketWise shares are held by company insiders. Comparatively, 10.4% of Dun & Bradstreet shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for MarketWise and Dun & Bradstreet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MarketWise	0	1	1	0	2.50
Dun & Bradstreet	0	4	2	1	2.57

MarketWise presently has a consensus price target of $2.50, suggesting a potential upside of 321.51%. Dun & Bradstreet has a consensus price target of $13.83, suggesting a potential upside of 16.11%. Given MarketWise’s higher probable upside, equities research analysts plainly believe MarketWise is more favorable than Dun & Bradstreet.

Profitability

This table compares MarketWise and Dun & Bradstreet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MarketWise	0.80%	-1.30%	0.91%
Dun & Bradstreet	-1.42%	11.35%	4.25%

Summary

Dun & Bradstreet beats MarketWise on 10 of the 17 factors compared between the two stocks.

About MarketWise

MarketWise, Inc. operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters. It provides a suite of stock research tools and portfolio management services under the Chaikin Analytics brand; portfolio management software tools under the TradeSmith brand name; and database of accounting-based financial summaries under the Altimetry brand. In addition, the company develops screeners, monitors, portfolio management tools, and proprietary indicators that produce a composite score to rank publicly traded companies. The company was founded in 1999 and is headquartered in Baltimore, Maryland.

About Dun & Bradstreet

Dun & Bradstreet Holdings, Inc., together with its subsidiaries, provides business-to-business data and analytics in North America and internationally. It offers finance and risk solutions, including D&B Finance Analytics, an online application that offers clients real time access to its information, comprehensive monitoring, and portfolio analysis; D&B Direct, an application programming interface (API) that delivers risk and financial data directly into enterprise applications for real-time credit decision-making; D&B Small Business, a suite of tools that allows SMBs to monitor and build their business credit file; D&B Enterprise Risk Assessment Manager, a solution for managing and automating credit decisioning and reporting; and D&B Risk Analytics, a subscription-based online application that offers clients real-time access to complete and up-to-date global information to mitigate supply chain risk, regulatory risk, and ESG assessment, as well as other related risks; Risk Guardian, a subscription-based online application that offers real-time access to Northern Europe information, monitoring, and portfolio analysis; and D&B Beneficial Ownership that offers risk intelligence on ultimate beneficial ownership. The company also provides sales and marketing solutions, including D&B Connect, a self-service data management platform; D&B Optimizer, an integrated data management solution; D&B Rev.Up ABX, an open and agnostic platform that aligns marketing and sales teams to deliver an optimal and coordinated buying; D&B Hoovers, a sales intelligence solution; D&B Audience Targeting, which helps clients to reach the right audiences with the right messages; D&B Visitor Intelligence that turns web visitors into leads; D&B Direct, an API-enabled data management solution; and InfoTorg, an online SaaS application that provides information services. Dun & Bradstreet Holdings, Inc. was founded in 1841 and is headquartered in Jacksonville, Florida.