Critical Review: Relx (NYSE:RELX) & Nuvei (NASDAQ:NVEI)

Relx (NYSE:RELX) and Nuvei (NASDAQ:NVEI) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Valuation & Earnings

This table compares Relx and Nuvei”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Relx	$9.91 billion	9.10	$2.22 billion	N/A	N/A
Nuvei	$1.31 billion	3.57	-$7.84 million	($0.04)	-833.75

Relx has higher revenue and earnings than Nuvei.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Relx and Nuvei, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Relx	0	1	1	1	3.00
Nuvei	0	9	8	0	2.47

Nuvei has a consensus price target of $32.21, indicating a potential downside of 3.41%. Given Nuvei’s higher possible upside, analysts clearly believe Nuvei is more favorable than Relx.

Insider and Institutional Ownership

15.0% of Relx shares are held by institutional investors. Comparatively, 42.5% of Nuvei shares are held by institutional investors. 0.0% of Relx shares are held by company insiders. Comparatively, 20.0% of Nuvei shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Relx has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Nuvei has a beta of 2.53, suggesting that its share price is 153% more volatile than the S&P 500.

Profitability

This table compares Relx and Nuvei’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Relx	N/A	N/A	N/A
Nuvei	-0.87%	6.98%	2.80%

Dividends

Relx pays an annual dividend of $0.48 per share and has a dividend yield of 1.0%. Nuvei pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Nuvei pays out -1,000.0% of its earnings in the form of a dividend.

Summary

Nuvei beats Relx on 9 of the 15 factors compared between the two stocks.

About Relx

RELX PLC, together with its subsidiaries, provides information-based analytics and decision tools for professional and business customers in North America, Europe, and internationally. It operates through four segments: Risk; Scientific, Technical & Medical; Legal; and Exhibitions. The Risk segment offers information-based analytics and decision tools that combine public and industry specific content with technology and algorithms to assist clients in evaluating and predicting risk. The Scientific, Technical & Medical segment provides information and data sets that help researchers and healthcare professionals to advance science and health outcomes. The Legal segment provides legal, regulatory, and business information and analytics that help customers in decision-making, as well as increases the productivity. The Exhibitions segment is involved in the business that combines face-to-face with data and digital tools to help customers learn about markets, source products, and complete transactions. The company was formerly known as Reed Elsevier PLC and changed its name to RELX PLC in July 2015. RELX PLC was incorporated in 1903 and is headquartered in London, the United Kingdom.

About Nuvei

Nuvei Corporation provides payment technology solutions to merchants and partners in North America, Europe, the Middle East and Africa, Latin America, and the Asia Pacific. The company's platform enables customers to pay and/or accept payments worldwide regardless of the location, device, or preferred payment method. Its solutions comprise a fully integrated payments engine with global processing capabilities, a turnkey solution for frictionless payment experiences, and a broad suite of data-driven business intelligence tools and risk management services. The company markets and sells its products and services through direct and indirect sales, strategic platform integrations, local sales teams, and indirect partners. The company was formerly known as Pivotal Development Corporation Inc. and changed its name to Nuvei Corporation in November 2018. Nuvei Corporation was founded in 2003 and is headquartered in Montreal, Canada.