Comparing UBS Group (NYSE:UBS) & Donnelley Financial Solutions (NYSE:DFIN)

UBS Group (NYSE:UBS) and Donnelley Financial Solutions (NYSE:DFIN) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for UBS Group and Donnelley Financial Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UBS Group	2	4	6	0	2.33
Donnelley Financial Solutions	0	2	2	1	2.80

UBS Group currently has a consensus target price of $60.30, indicating a potential upside of 23.40%. Donnelley Financial Solutions has a consensus target price of $74.00, indicating a potential upside of 6.94%. Given UBS Group’s higher probable upside, equities research analysts plainly believe UBS Group is more favorable than Donnelley Financial Solutions.

Valuation and Earnings

This table compares UBS Group and Donnelley Financial Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UBS Group	$52.28 billion	2.92	$7.77 billion	$3.03	16.13
Donnelley Financial Solutions	$767.00 million	2.20	$32.40 million	$3.79	18.26

UBS Group has higher revenue and earnings than Donnelley Financial Solutions. UBS Group is trading at a lower price-to-earnings ratio than Donnelley Financial Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares UBS Group and Donnelley Financial Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UBS Group	13.36%	10.77%	0.58%
Donnelley Financial Solutions	12.37%	26.70%	12.70%

Volatility & Risk

UBS Group has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Donnelley Financial Solutions has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Insider and Institutional Ownership

93.8% of Donnelley Financial Solutions shares are owned by institutional investors. 1.0% of UBS Group shares are owned by company insiders. Comparatively, 5.2% of Donnelley Financial Solutions shares are owned by company 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.

Summary

Donnelley Financial Solutions beats UBS Group on 8 of the 15 factors compared between the two stocks.

About UBS Group

UBS Group AG is a Swiss financial services company providing wealth management, banking, asset management and investment banking services to individuals, businesses, institutions and governments. It has a strong presence in Switzerland and serves clients in markets around the world. The company’s businesses include Global Wealth Management, Swiss Personal & Corporate Banking, Asset Management and the Investment Bank. Its services include financial planning and investment advice, lending and deposit products, portfolio and fund management, and capital markets and advisory services.

About Donnelley Financial Solutions

Donnelley Financial Solutions, Inc. provides software and services that help companies and investment firms meet regulatory, compliance and financial-communication requirements. Its offerings include support for preparing and filing regulatory documents, financial reporting and shareholder communications. The company also provides technology for managing regulatory disclosures and transactions, including virtual data rooms used in mergers, acquisitions and other corporate processes. Its clients include public and private companies, investment managers, funds and professional services firms.