We got lucky again. A recent MarketWatch article featured return on invested capital (ROIC) research from FactSet (FDS) and allows us another real-time opportunity to compare our research to a competitor’s. On July 16, 2024, we highlighted alarming differences between our research and Morningstar’s.

The main takeaways from these comparisons are:

  1. Our proprietary fundamental data makes our stock research very different – in a very good way.
  2. Given the recent market volatility, investors need reliable stock research now more than ever.
  3. We hope to earn your business by showing the value we deliver our clients.

As with Morningstar, there are very large differences between our research and FactSet’s. For example:

  • FactSet shows VeriSign’s (VRSN) 10-year Average ROIC is 232%, and we show 4%.
  • FactSet shows Lennox International’s (LII) 10-year Average ROIC is 37%, and we show 19%.
  • FactSet shows Ubiquiti’s (UI) 10-year Average ROIC is 58%, and we show 110%.

More details in Figure 1.

Figure 1: 10-Year Average ROIC: New Constructs vs. FactSet

Sources: New Constructs, LLC and FactSet data from here

We also see very large differences in the 3-Year Average ROICs from FactSet compared to our research. For example:

  • FactSet shows VeriSign’s (VRSN) 3-year Average ROIC is 285%, and we show 4%.
  • FactSet shows Lennox International’s (LII) 3-year Average ROIC is 43%, and we show 24%.
  • FactSet NVR’s (NVR) 3-year Average ROIC is 34%, and we show 55%.

See Figure 2.

Figure 2: 3-Year Average ROIC: New Constructs vs. FactSet

Sources: New Constructs, LLC and FactSet data from here

Three prestigious institutions have published studies that prove the superiority of our research, and these real-time comparisons empirically demonstrate the advantages our data enables clients to apply in their research.

This article was originally published on August 9, 2024.

Disclosure: David Trainer, Kyle Guske II, and Hakan Salt receive no compensation to write about any specific stock, style, or theme.

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