Experian vs Equifax Which Is More Lucrative?

Experian and Equifax are both major players in the credit reporting industry, providing vital financial data to businesses, lenders, and consumers worldwide. As publicly traded companies, their stocks are closely monitored by investors seeking to capitalize on the growing demand for credit information services. Experian boasts a strong global presence and a history of consistent growth, while Equifax has faced challenges in recent years due to data breaches. Investors must carefully consider the strengths and weaknesses of each company before deciding where to put their money.

Experian or Equifax?

When comparing Experian and Equifax, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Experian and Equifax.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Experian has a dividend yield of 1.19%, while Equifax has a dividend yield of 0.58%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Experian reports a 5-year dividend growth of 4.14% year and a payout ratio of 42.56%. On the other hand, Equifax reports a 5-year dividend growth of 0.00% year and a payout ratio of 34.29%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Experian P/E ratio at 24.97 and Equifax's P/E ratio at 58.98. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Experian P/B ratio is 9.70 while Equifax's P/B ratio is 6.76.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Experian has seen a 5-year revenue growth of 0.42%, while Equifax's is 0.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Experian's ROE at 41.06% and Equifax's ROE at 12.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $49.00 for Experian and $265.82 for Equifax. Over the past year, Experian's prices ranged from $33.16 to $53.10, with a yearly change of 60.13%. Equifax's prices fluctuated between $189.95 and $309.63, with a yearly change of 63.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.