TransUnion vs Experian Which Offers More Value?

TransUnion and Experian are two major players in the credit reporting industry, both offering valuable services to consumers and businesses alike. Investors are constantly comparing the stocks of these two companies to determine which may be the better investment option. TransUnion has shown steady growth in recent years, while Experian is known for its global reach and strong track record. Understanding the financial health, market performance, and growth potential of these companies is crucial for making informed investment decisions.

TransUnion or Experian?

When comparing TransUnion and Experian, 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 Experian.

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 0.43%, while Experian has a dividend yield of 1.26%. 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, Experian reports a 5-year dividend growth of 4.14% year and a payout ratio of 37.84%.

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 84.23 and Experian's P/E ratio at 23.52. 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 4.48 while Experian's P/B ratio is 9.14.

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 Experian's is 0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TransUnion's ROE at 5.45% and Experian's ROE at 41.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $96.83 for TransUnion and $46.37 for Experian. Over the past year, TransUnion's prices ranged from $62.42 to $113.17, with a yearly change of 81.29%. Experian's prices fluctuated between $38.06 and $53.10, with a yearly change of 39.52%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.