Financial Comparison: S&P Global (NYSE:SPGI) vs. OTC Markets Group (OTCMKTS:OTCM)

S&P Global (NYSE:SPGI) and OTC Markets Group (OTCMKTS:OTCM) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Institutional and Insider Ownership

87.2% of S&P Global shares are owned by institutional investors. Comparatively, 0.1% of OTC Markets Group shares are owned by institutional investors. 0.1% of S&P Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares S&P Global and OTC Markets Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
S&P Global	27.27%	14.68%	8.26%
OTC Markets Group	24.08%	67.70%	30.88%

Risk and Volatility

S&P Global has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, OTC Markets Group has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.

Dividends

S&P Global pays an annual dividend of $3.84 per share and has a dividend yield of 0.8%. OTC Markets Group pays an annual dividend of $0.72 per share and has a dividend yield of 1.4%. S&P Global pays out 30.2% of its earnings in the form of a dividend. OTC Markets Group pays out 31.7% 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. S&P Global has raised its dividend for 53 consecutive years.

Earnings and Valuation

This table compares S&P Global and OTC Markets Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
S&P Global	$14.21 billion	11.04	$3.85 billion	$12.73	40.18
OTC Markets Group	$111.06 million	5.72	$27.36 million	$2.27	23.28

S&P Global has higher revenue and earnings than OTC Markets Group. OTC Markets Group is trading at a lower price-to-earnings ratio than S&P Global, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for S&P Global and OTC Markets Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
S&P Global	0	1	14	1	3.00
OTC Markets Group	0	0	0	0	0.00

S&P Global presently has a consensus target price of $592.71, suggesting a potential upside of 15.87%. Given S&P Global’s stronger consensus rating and higher probable upside, equities research analysts clearly believe S&P Global is more favorable than OTC Markets Group.

Summary

S&P Global beats OTC Markets Group on 15 of the 18 factors compared between the two stocks.

About S&P Global

S&P Global, Inc. engages in the provision of transparent and independent ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. It operates through the following segments: Market Intelligence, Ratings, Commodity Insights, Mobility, Indices, and Engineering Solutions. The Market Intelligence segment provides multi-asset-class data and analytics integrated with purpose-built workflow solutions. The Ratings segment is involved in credit ratings, research, and analytics, offering investors and other market participants information, ratings, and benchmarks. The Commodity Insights segment focuses on information and benchmark prices for the commodity and energy markets. The Mobility segment offers solutions serving the full automotive value chain including vehicle manufacturers, automotive suppliers, mobility service providers, retailers, consumers, and finance and insurance companies. The Engineering Solutions segment engages in advanced knowledge discovery technologies, research tools, and software-based engineering decision engines to advance innovation, maximize productivity, improve quality, and reduce risk. The company was founded by James H. McGraw and John A. Hill in 1917 and is headquartered in New York, NY.

About OTC Markets Group

OTC Markets Group Inc. operates regulated markets for trading 12,000 U.S. and international securities. Its data-driven disclosure standards form the foundation of its three public markets: OTCQX Best Market, OTCQB Venture Market, and Pink Open Market. The company's OTC Link Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Its innovative model offers companies efficient access to the U.S. financial markets. The company through its wholly owned subsidiary, OTC Link LLC, operates OTC Link ATS, OTC Link ECN, and OTC Link NQB, which are Securities and Exchange Commission (SEC) regulated ATS. The company operates in three business lines: OTC Link, Market Data Licensing, and Corporate Services. The OTC Link business operates three ATSs, such as OTC Link ATS, OTC Link ECN, and OTC Link NQB that provide trading services to FINRA member broker-dealer subscribers. The Market Data Licensing business provides market data and compliance data, including SEC filings for a spectrum of securities and issuers. It provides broker-dealers, investors, traders, institutions, companies, accountants, regulators, and others with a suite of enterprise and user market data licenses, offering via direct or extranet connectivity through third-party market data redistributors or order management systems. The Corporate Services business operates the OTCQX Best Market and the OTCQB Venture Market and offers companies access to a suite of services that are designed to facilitate public disclosure and communication with investors, promote transparency, and allow companies to demonstrate regulatory compliance and mitigate market risk. Its services include the OTC Disclosure and News Service, RealTime Level 2 Quote Display, Blue Sky Monitoring Service for issuers, and Virtual Investor Conferences product. OTC Markets Group Inc. was founded in 1904 and is headquartered in New York, New York.