How Does FactSet Research Systems Compare to Its Peers?

Gabriel Kane
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FactSet Research Systems Reports Strong Fiscal 1Q16 Results

(Continued from Prior Part)

FactSet Research Systems and its peers

In this article, we’ll compare FactSet Research Systems (FDS) with its peers and a few ETFs that invest in it:

  • The PE (price-to-earnings) ratios of FactSet Research Systems (FDS), Thomson Reuters (TRI), MSCI (MSCI), Markit (MRKT), and Morningstar (MORN) are 28.5x, 15.5x, 37.0x, 45.1x, and 28.4x, respectively, as of December 15, 2015.

  • The PBV (price-to-book value) ratios of FactSet Research Systems, Thomson Reuters, MSCI, Markit, and Morningstar are 12.6x, 2.4x, 6.8x, 2.3x, and 5.3x, respectively.

Thus, FactSet Research Systems has outperformed its peers based on PBV ratio.

ETFs that invest in FactSet Research Systems

The iShares North American Tech-Software ETF (IGV) invests 1.4% of its holdings in FDS.

The PowerShares S&P MidCap Low Volatility Portfolio (XMLV) invests 1.4% of its holdings in FDS. The ETF tracks a volatility-weighted index of the 80 least volatile S&P MidCap 400 companies.

The First Trust Mid Cap Growth AlphaDex ETF (FNY) invests 0.87% of its holdings in FDS. The ETF tracks a tiered equal-weighted index of growth stocks selected by S&P’s AlphaDex methodology from the S&P MidCap 400 index.

Comparing FactSet Research Systems and its ETFs

Now let’s compare FactSet Research (FDS) with these ETFs:

  • The YTD (year-to-date) price movements of FDS, IGV, XMLV, and FNY are 16.7%, 10.8%, 3.5%, and -2.3%, respectively.

  • The PE ratios of FDS, IGV, XMLV, and FNY are 28.5x, 57.9x, 21.3x, and 28.9x, respectively.

  • The PBV ratios of FDS, IGV, XMLV, and FNY are 12.6x, 5.4x, 2.4x, and 4.1x, respectively.

According to the above findings, these ETFs have mostly outperformed FactSet Research Systems based on PE ratio. However, FDS is ahead of these ETFs based on price movement and PBV ratio.

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