Wolters Kluwer vs Thomson Reuters Which Is More Reliable?

Wolters Kluwer and Thomson Reuters are two of the most prominent players in the financial information and services industry. Both companies provide a wide range of solutions for professionals in fields such as legal, tax, and accounting. Wolters Kluwer is known for its emphasis on cloud-based software and services, while Thomson Reuters is revered for its comprehensive databases and research tools. Investors have taken note of the competitive dynamic between these two giants, closely monitoring their stock performances and market strategies.

Wolters Kluwer or Thomson Reuters?

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

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. Wolters Kluwer has a dividend yield of 1.27%, while Thomson Reuters has a dividend yield of 1.25%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Wolters Kluwer reports a 5-year dividend growth of 9.30% year and a payout ratio of 47.83%. On the other hand, Thomson Reuters reports a 5-year dividend growth of 57.21% year and a payout ratio of 40.52%.

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 Wolters Kluwer P/E ratio at 38.44 and Thomson Reuters's P/E ratio at 33.08. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Wolters Kluwer P/B ratio is 25.93 while Thomson Reuters's P/B ratio is 6.43.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Wolters Kluwer has seen a 5-year revenue growth of 0.48%, while Thomson Reuters's is 0.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wolters Kluwer's ROE at 63.10% and Thomson Reuters's ROE at 20.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $173.21 for Wolters Kluwer and $168.05 for Thomson Reuters. Over the past year, Wolters Kluwer's prices ranged from $129.76 to $176.35, with a yearly change of 35.90%. Thomson Reuters's prices fluctuated between $130.23 and $176.03, with a yearly change of 35.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.