TransUnion vs Equifax Which Performs Better?

TransUnion and Equifax are two major players in the credit reporting industry, both publicly traded companies with stocks that are closely watched by investors. As competitors, their stock performance is often compared and analyzed to determine which company is more successful and poised for growth in the future. Investors look at various factors such as revenue, profitability, market share, and strategic initiatives to make informed decisions about investing in either TransUnion or Equifax stocks.

TransUnion or Equifax?

When comparing TransUnion 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 TransUnion 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. TransUnion has a dividend yield of 0.39%, while Equifax has a dividend yield of 0.58%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TransUnion reports a 5-year dividend growth of 13.30% year and a payout ratio of 36.64%. 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 TransUnion P/E ratio at 92.72 and Equifax's P/E ratio at 59.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. TransUnion P/B ratio is 4.93 while Equifax's P/B ratio is 6.84.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, TransUnion has seen a 5-year revenue growth of 0.58%, while Equifax's is 0.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TransUnion's ROE at 5.45% and Equifax's ROE at 12.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $105.11 for TransUnion and $269.62 for Equifax. Over the past year, TransUnion's prices ranged from $51.50 to $113.17, with a yearly change of 119.75%. Equifax's prices fluctuated between $182.01 and $309.63, with a yearly change of 70.12%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.