Contrasting UL Solutions (NYSE:ULS) and DCC (OTCMKTS:DCCPF)

DCC (OTCMKTS:DCCPF) and UL Solutions (NYSE:ULS) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Profitability

This table compares DCC and UL Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DCC	N/A	N/A	N/A
UL Solutions	11.29%	34.49%	12.74%

Earnings & Valuation

This table compares DCC and UL Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DCC	$22.98 billion	0.27	$263.46 million	N/A	N/A
UL Solutions	$2.87 billion	5.44	$326.00 million	$1.67	46.51

UL Solutions has lower revenue, but higher earnings than DCC.

Risk and Volatility

DCC has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, UL Solutions has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for DCC and UL Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DCC	0	0	1	0	3.00
UL Solutions	0	5	3	0	2.38

UL Solutions has a consensus price target of $81.71, suggesting a potential upside of 5.20%. Given UL Solutions’ higher possible upside, analysts clearly believe UL Solutions is more favorable than DCC.

Summary

UL Solutions beats DCC on 8 of the 10 factors compared between the two stocks.

About DCC

DCC plc provides sales, marketing, and support services worldwide. The company operates through DCC Energy, DCC Healthcare, and DCC Technology segments. It sells and markets liquefied petroleum gas (LPG), refrigerants, and natural gas; markets, sells, and retails transport and commercial fuels, heating oils, and related products and services; operates retail petrol stations; resells fuel cards; distributes oil; and provides logistics services. It also offers products and services to healthcare providers, and health and beauty brand owners; contract manufacturing services to the health and beauty sector; nutrition products, such as vitamins and health supplements; beauty products; and product development, formulation, manufacturing, and packaging services. In, addition it distributes consumer technology products, including smart home products, peripherals and software, and accessories, as well as provides supply chain services. The company was founded in 1976 and is headquartered in Dublin, Ireland.

About UL Solutions

UL Solutions Inc. provides safety science services worldwide. It operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across various end markets, including energy, industrial automation, engineered materials, and built environment, as well as stakeholders, such as manufacturers, building owners, end users, and regulators. The Consumer segment offers safety certification testing, ongoing certification, global market access, testing for connectivity, performance and quality, and critical systems advisory and training services, as well as product market acceptance and risk mitigation services for customers in the consumer products end markets comprising consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, and retail, as well as consumer applications, such as new mobility, smart products, and 5G. The Software and Advisory segment provide software and technical advisory services that enable customers to manage regulatory requirements, deliver supply chain transparency, and operationalize sustainability for regulated industries, including life sciences, supply chain regulations, transparency needs, and new ESG and sustainability requirements. It offers ULTRUS software brand to help customers improve speed to market, sustainability and safety. UL Solutions Inc. was formerly known as UL Inc. and changed its name to UL Solutions Inc. in June 2022. The company was founded in 1894 and is headquartered in Northbrook, Illinois with additional offices in North America, Asia Pacific, Africa, Europe, Latin America, and Middle East. UL Solutions Inc. operates as a subsidiary of ULSE Inc.