Proof of the Superiority of Our Data, Models, & Ratings

Many firms claim their research is superior. We're the only ones who can prove it — with independent studies from Harvard, Ernst & Young, and the Journal of Financial Economics.

Three Independent Studies

Proof from Independent Institutions

Study 1

Best Fundamental Data in the World

Journal of Financial Economics

A top peer-reviewed journal proves how our Robo-Analyst technology overcomes material shortcomings in legacy data firms to provide superior fundamental data, earnings models, and research. More details →

Journal of Financial Economics study comparison chart
"[New Constructs'] Total Adjustments differs significantly from the items identified and excluded from Compustat's adjusted earnings measures. For example… 50% to 70% of the variation in Total Adjustments is not explained by S&P Global's (SPGI) Adjustments individually." Journal of Financial Economics, pp. 14
"A final source of differences [between New Constructs' and S&P Global's data] is due to data collection oversights…we identified cases where Compustat did not collect information relating to firms' income that is useful in assessing core earnings." Journal of Financial Economics, pp. 16
Study 2

Superior Financial Models

Ernst & Young

Ernst & Young features the superiority of our ROIC, NOPAT, and Invested Capital research compared to Capital IQ & Bloomberg's in Getting ROIC Right. See the Appendix for direct comparison details.

Ernst & Young ROIC comparison
"…an accurate calculation of ROIC requires more diligence than often occurs in some of the common, off-the-shelf ROIC calculations. Only by scouring the footnotes and the MD&A [the New Constructs method] can investors get an accurate calculation of ROIC." Ernst & Young, Getting ROIC Right, pp. 8
"The majority of the difference…comes from New Constructs' machine learning approach, which leverages technology to calculate ROIC by applying accounting adjustments that may be buried deeply in the footnotes across thousands of companies." Ernst & Young, Getting ROIC Right, pp. 4
Study 3

Superior Stock Ratings

Harvard Business School & Kelley School of Business

Robo-Analysts' stock ratings outperform those from human analysts, as shown in this paper from Harvard Business School & Indiana's Kelley School of Business. More details → Bloomberg features the paper here.

Harvard / Kelley School of Business Robo-Analyst study
"The portfolios formed following the buy recommendations of Robo-Analysts earn abnormal returns that are statistically and economically significant." Harvard Business School & Kelley School of Business, pp. 6
"Our results ultimately suggest that Robo-Analysts are a valuable, alternative information intermediary to traditional sell-side analysts." Harvard Business School & Kelley School of Business, pp. 20
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Further Reading