City of London (CTY) Competitors

Diploma (LON:DPLM) and City of London (LON:CTY) are both mid-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, media sentiment, valuation, dividends, institutional ownership, community ranking and analyst recommendations.

Do institutionals & insiders have more ownership in DPLM or CTY?

81.5% of Diploma shares are owned by institutional investors. Comparatively, 8.6% of City of London shares are owned by institutional investors. 0.5% of Diploma shares are owned by insiders. Comparatively, 1.5% of City of London shares are owned by 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.

Is DPLM or CTY a better dividend stock?

Diploma pays an annual dividend of GBX 57 per share and has a dividend yield of 1.2%. City of London pays an annual dividend of GBX 21 per share and has a dividend yield of 4.8%. Diploma pays out 65.5% of its earnings in the form of a dividend. City of London pays out 35.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. City of London is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the MarketBeat Community believe in DPLM or CTY?

Diploma received 214 more outperform votes than City of London when rated by MarketBeat users. However, 62.96% of users gave City of London an outperform vote while only 61.71% of users gave Diploma an outperform vote.

Company	Underperform	Outperform
Diploma	Outperform Votes 282 61.71%	Underperform Votes 175 38.29%
City of London	Outperform Votes 68 62.96%	Underperform Votes 40 37.04%

Is DPLM or CTY more profitable?

City of London has a net margin of 95.77% compared to Diploma's net margin of 9.25%. City of London's return on equity of 14.45% beat Diploma's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Diploma	9.25%	13.18%	8.32%
City of London	95.77%	14.45%	4.00%

Which has higher earnings and valuation, DPLM or CTY?

City of London has lower revenue, but higher earnings than Diploma. City of London is trading at a lower price-to-earnings ratio than Diploma, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diploma	£1.25B	4.95	£115.40M	£87.00	53.29
City of London	£307.08M	7.03	£294.08M	£59.40	7.35

Does the media prefer DPLM or CTY?

In the previous week, City of London had 7 more articles in the media than Diploma. MarketBeat recorded 8 mentions for City of London and 1 mentions for Diploma. City of London's average media sentiment score of 0.73 beat Diploma's score of 0.00 indicating that City of London is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Diploma	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
City of London	4 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility and risk, DPLM or CTY?

Diploma has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, City of London has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.

Do analysts rate DPLM or CTY?

Diploma currently has a consensus target price of GBX 4,567.50, suggesting a potential downside of 1.48%. Given Diploma's stronger consensus rating and higher probable upside, equities analysts clearly believe Diploma is more favorable than City of London.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diploma	0 Sell rating(s)	2 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.60
City of London	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00

Summary

Diploma and City of London tied by winning 10 of the 20 factors compared between the two stocks.