Relx vs Wolters Kluwer: a Stock Duel
A duel in the information services industry
The time has come for the third stock duel of the year: Relx vs Wolters Kluwer. With strong defensiveness, consistent growth, and a synergy with the AI boom, these two companies are highly intriguing. They share a similar profile, but what sets them apart? Let’s dive in and explore!
If you enjoy stock duels, don’t miss the 2 first ones!
Share your thoughts on both companies in the comments below!
Metrics and market
RELX (ticker: RELX.L) and Wolters Kluwer (ticker: WKL.AS) both occupy leading positions in the professional information and analytics sector, yet each has carved out distinct strengths and growth trajectories.
RELX’s transformation from a traditional publisher into a data-driven analytics powerhouse has been a key driver of its success. By investing heavily in technology and specialized data solutions, RELX has delivered robust performance and maintained healthy profit margins. This shift toward analytics-based services, especially in areas like legal, scientific, and risk analytics, has helped RELX capture market share and boost revenue growth.
Here you can find my article about the company:
Wolters Kluwer, on the other hand, has steadily built a strong foothold in healthcare, tax, accounting, and compliance solutions. Its push into cloud-based offerings and SaaS platforms has broadened its customer base and opened new avenues for recurring revenue. Although Wolters Kluwer may not have pivoted as aggressively into data analytics as RELX, it has demonstrated consistent progress through targeted acquisitions and organic investments in digital solutions.
Valuation-wise, both are expensive. This is justified by a decent moat, a defensive business model and a steady growth.
Technical analysis
Used source: Marketscreener.com. Affiliate link just here
RELX
The trend is very positive but here would be my 3 buying zones:
Buying zone 1: £33
Buying zone 2: £28
Buying zone 3: £25
Wolters Kluwer
After the recent pullback, the price could be an opportunity:
Buying zone 1: 140€
Buying zone 2: 125€
Buying zone 3: 109€
While this newsletter provides valuable content for free subscribers, becoming a paid subscriber unlocks even greater benefits to help you gain an edge in the market.
Here is why upgrading to a paid subscription is worth it:
Access exclusive content. Dive deeper with detailed analyses, advanced insights, and premium research not available to free subscribers
Follow my portfolio. Gain exclusive access to my portfolio, including monthly updates, tracking my moves, and watchlists
Discover more stock ideas. Explore in-depth stock ideas, technical analyses, and strategies tailored to uncover hidden opportunities
Support this newsletter. Your subscription directly supports the creation of high-quality, valuable content to help you achieve your investment goals
Thanks to Quality Stocks for your comparison of RELX PLC (REL; REL LN) and Wolters Kluwer N.V. (WKL NA).
(1) It's been almost a year since your comparison. I wonder how do you see the risk from generative AI impacting both companies?
(2) Have you considered Springer Nature AG & Co. KGaA (SPG; SPG GR)? It owns the Nature journal. It is the largest competitor to REL's Elsevier.
I find SPG interesting because it sold-off like a software company. But it is not software. SPG is a brand.
I discuss these in further details here: https://angsanaanderson.substack.com/p/shortlist-springer-nature-ag-and?r=5rl2u5
Great article, I have written about both extensively including potential AI impacts https://charliehuggins.substack.com/p/will-wolters-kluwer-become-extinct