Critical Survey: Broadridge Financial Solutions (NYSE:BR) and Uxin (NASDAQ:UXIN)

Broadridge Financial Solutions (NYSE:BR) and Uxin (NASDAQ:UXIN) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Risk & Volatility

Broadridge Financial Solutions has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Uxin has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Earnings and Valuation

This table compares Broadridge Financial Solutions and Uxin”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadridge Financial Solutions	$6.51 billion	4.23	$698.10 million	$5.78	40.73
Uxin	$190.40 million	0.10	-$51.58 million	($20.34)	-0.21

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

Analyst Recommendations

This is a summary of current ratings and price targets for Broadridge Financial Solutions and Uxin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadridge Financial Solutions	0	4	3	0	2.43
Uxin	0	0	0	0	0.00

Broadridge Financial Solutions currently has a consensus price target of $222.43, indicating a potential downside of 5.52%. Given Broadridge Financial Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Broadridge Financial Solutions is more favorable than Uxin.

Profitability

This table compares Broadridge Financial Solutions and Uxin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadridge Financial Solutions	10.57%	41.79%	11.21%
Uxin	-20.57%	-248.43%	73.24%

Insider and Institutional Ownership

90.0% of Broadridge Financial Solutions shares are owned by institutional investors. Comparatively, 22.4% of Uxin shares are owned by institutional investors. 1.3% of Broadridge Financial Solutions shares are owned by insiders. Comparatively, 62.9% of Uxin shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Broadridge Financial Solutions beats Uxin on 11 of the 14 factors compared between the two stocks.

About Broadridge Financial Solutions

Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry. The company's Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote processing services; and distributes regulatory reports, class action, and corporate action/reorganization event information, as well as tax reporting solutions. It also offers ProxyEdge, an electronic proxy delivery and voting solution; data-driven solutions and an end-to-end platform for content management, composition, and omni-channel distribution of regulatory, marketing, and transactional information, as well as mutual fund trade processing services; solutions for public corporations and mutual funds; data and analytics solutions; SEC filing and capital markets transaction services; registrar, stock transfer, and record-keeping services; and omni-channel customer communications solutions, as well as operates Broadridge Communications Cloud platform that creates, delivers, and manages communications and customer engagement activities. Its Global Technology and Operations segment provides solutions that automate the front-to-back transaction lifecycle of equity, mutual fund, fixed income, foreign exchange and exchange-traded derivatives, order capture and execution, trade confirmation, margin, cash management, clearing and settlement, reference data management, reconciliations, securities financing and collateral management, asset servicing, compliance and regulatory reporting, portfolio accounting, and custody-related services. This segment also offers business process outsourcing services; technology solutions, such portfolio management, compliance, fee billing, and operational support solutions; and capital market and wealth and investment management solutions. The company was founded in 1962 and is headquartered in Lake Success, New York.

About Uxin

Uxin Limited, an investment holding company, engages in the retail sale of vehicles in China. The company operates an e-commerce platform for buying and selling used cars. It also offers used-car acquisition, inspection, reconditioning, warehousing, pre-sales and after-sales, and various car-related value-added products and services, as well as warranty and repair, delivery, and title transfers and vehicle registration services. Uxin Limited was incorporated in 2011 and is headquartered in Beijing, China.