Thomson Reuters vs Wolters Kluwer Which Is More Promising?

Thomson Reuters and Wolters Kluwer are two prominent companies in the financial information and services industry. Thomson Reuters is known for its comprehensive suite of financial and legal information services, while Wolters Kluwer specializes in providing information and services for professionals in the healthcare, tax, accounting, and legal sectors. Both companies are publicly traded on the stock market, with investors closely monitoring their performance and financial health. This comparison will analyze the strengths and weaknesses of both Thomson Reuters and Wolters Kluwer stocks.

Thomson Reuters or Wolters Kluwer?

When comparing Thomson Reuters and Wolters Kluwer, 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 Thomson Reuters and Wolters Kluwer.

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. Thomson Reuters has a dividend yield of 1.28%, while Wolters Kluwer has a dividend yield of 1.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Thomson Reuters reports a 5-year dividend growth of 57.21% year and a payout ratio of 40.52%. On the other hand, Wolters Kluwer reports a 5-year dividend growth of 9.30% year and a payout ratio of 47.83%.

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 Thomson Reuters P/E ratio at 32.87 and Wolters Kluwer's P/E ratio at 38.27. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Thomson Reuters P/B ratio is 6.37 while Wolters Kluwer's P/B ratio is 25.80.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Thomson Reuters has seen a 5-year revenue growth of 0.72%, while Wolters Kluwer's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Thomson Reuters's ROE at 20.22% and Wolters Kluwer's ROE at 63.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $167.45 for Thomson Reuters and $170.47 for Wolters Kluwer. Over the past year, Thomson Reuters's prices ranged from $138.83 to $176.03, with a yearly change of 26.80%. Wolters Kluwer's prices fluctuated between $138.05 and $176.35, with a yearly change of 27.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.