UPDATE: Thomson Reuters’ Monetary & Threat division turned Refinitiv on October 1, 2018. In consequence, Eikon is a Refinitiv product.
See more: How much do bloomberg terminals cost
Monetary knowledge suppliers are a key a part of the the monetary skilled’s workflow. For the funding banking analyst who wants to search out historic knowledge and forecasts with a view to construct a 3-statement mannequin or for the forex dealer searching for real-time quotes, up-to-date and correct monetary knowledge is vital.
Because it presently stands, the monetary knowledge business is dominated by 4 giant suppliers: Bloomberg, S&P (Capital IQ + SNL), FactSet and Thomson Reuters Eikon. All 4 attempt to provide a one-stop-shop platform that gives all varieties of monetary knowledge companies (with a large price ticket, as you’ll see under).
The objective of this text is to offer a radical comparability of price, business relevance (buy-side vs. sell-side) and killer apps and options that may push customers to favor one knowledge supplier over one other.
Worth Comparability at a Look
Platform Worth (per consumer per yr) Variety of customers Market share(1) Bloomberg The price of a Bloomberg Terminal is $24,000 per yr and terminals are leased on a two-year foundation. The value drops to $20,000 per terminal per yr for two or extra terminals. See under for educational pricing. 325,000 33.4% Capital IQ Capital IQ pricing begins at $13,000 per consumer per yr and drops to as little as $7,500 per consumer per yr for bigger numbers of customers. Nonetheless, pricing can go up considerably with added options. For instance, downloading fairness analysis stories comes at an additional price – both on a per-download foundation or limitless at $2,500 per yr. Undisclosed 5.6% FactSet The price of a FactSet subscription is $12,000 per yr for the total product. 89,000 4.2% Eikon The price of Thomson Reuters’ Eikon is $22,000 per yr, however a stripped down model can price as little as $3,600 per yr. 190,000 23.1%
(1) Supply: Burton-Taylor Worldwide consulting and Bloomberg
Bloomberg is the 800-pound gorilla within the monetary knowledge world, with monetary knowledge income of roughly $9 billion and 325,000 terminals presently licensed. It controls greater than 33% of the monetary knowledge market. Its closest rival is Thomson Reuters, with 23% of the market share.
The price of a Bloomberg Terminal is $24,000 per yr, and terminals are leased on a two-year foundation. The value drops to $20,000 per terminal per yr for two or extra terminals.
Tutorial reductions: For universities trying to energy their finance labs with the well-known terminals, Bloomberg affords vital incentives. For instance, as soon as colleges commit to three terminals, they will get 9 further machines without spending a dime, dropping the entire per-terminal price to as little as $3,000 per yr.
Bloomberg is greatest for …
Purchase facet, gross sales and buying and selling and asset administration. Whereas the Bloomberg terminal is used throughout the monetary companies world, it’s used predominantly by portfolio managers, buy-side analysts, and sell-side finance professionals throughout the gross sales and buying and selling and asset administration features.
You completely should go along with Bloomberg if …
You’re in any manner concerned within the bond market. Bloomberg’s mounted earnings knowledge is second to none. Its knowledge units are extra complete and are up to date extra shortly than any of its friends, making it particularly helpful for credit score analysis analysts, mounted earnings gross sales and bond merchants, and professionals in debt capital markets.
Then there’s Bloomberg’s instantaneous messaging service — one among Bloomberg’s arguably stickiest options. Bloomberg’s IM service permits anybody on the terminal to IM with others on the terminal. Why is that this thrilling? As a result of if merchants in any respect the buying and selling desks are posting quotes on Bloomberg IM and nowhere else, you merely should be on Bloomberg. It’s principally the identical cause you’re on Fb and never on MySpace.
This can be a sticky function for Bloomberg because it faces competitors from Thomson Reuters’ Eikon platform and chat-only startup different Symphony. In an effort to kill Symphony, in October of 2017 Bloomberg stunned many observers by decoupling IM from the remainder of the terminal license. It now expenses $10 monthly for IM-only (your organization does should personal at the least one terminal to have the ability to get this service for extra customers).
You possibly can most likely reside with out Bloomberg if …
You’re in funding banking. Funding bankers don’t use Bloomberg as extensively as a few of their promote facet friends and purchase facet professionals. For instance, the M&A staff at an funding financial institution might need a pair Bloomberg Terminals obtainable, however it’s unlikely that every banker can have their very own machine.
As a substitute, funding bankers are way more more likely to have their very own devoted FactSet or Capital IQ subscription. That’s as a result of Capital IQ and FactSet have developed particular capabilities reminiscent of a click-through to audit knowledge in supply paperwork, Excel plugins that improve productiveness, and firm and transaction screening instruments designed particularly with the funding banking workflow in thoughts (extra on this under).
Capital IQ is the relative new child on the block. It was based in 1998 and was acquired by McGraw Hill’s S&P division for $200 million in 2004. Not like Bloomberg or FactSet, Capital IQ is a web-based portal accessible from any machine.
The Capital IQ providing was strengthened additional in July 2015 with McGraw Hill’s $2.2 billion buy of rival SNL. Whereas Capital IQ and its largest rival FactSet present monetary knowledge throughout all sectors, SNL’s energy has been unparalleled monetary and transaction knowledge units inside particular sectors, specifically insurance coverage, banking, actual property, vitality, metals and mining, and media.
One among our favourite issues about SNL is that they ship you $50 should you catch a mistake of their database. Fellow finance nerds will likely be blissful to know that S&P intends to proceed offering this perk (and it now seems to use to Capital IQ errors as properly).
Whereas S&P doesn’t disclose Capital IQ and SNL income individually from its different knowledge merchandise throughout the “Markets and Commodities Intelligence” phase, it’s probably that Capital IQ and SNL characterize the overwhelming majority of the phase’s $2.2 billion in subscription income.
Capital IQ Pricing
Capital IQ pricing begins at $13,000 per consumer per yr with a minimal of three customers and drops to as little as $7,500 per consumer per yr for bigger numbers of customers. Nonetheless, pricing can go up considerably with further options. For instance, the flexibility to obtain fairness analysis stories comes at an additional price — both on a per-download foundation or limitless at $2,500 per yr. As well as, SNL has now been built-in into Capital IQ S&P and is presently bought as a separate product with an extra price.
Capital IQ is greatest for…
Funding banking. Bankers do quite a lot of knowledge scrubbing, spreading comps and firm profiles, and Capital IQ is designed particularly to assist with this.
Scrubbing knowledge: When an organization stories its third quarter earnings, the GAAP-based numbers like working revenue, web earnings and earnings per share are sometimes not the numbers anybody really cares about. As a substitute, analysts pore by means of the footnotes and disclosures to reach at “normalized” “non-GAAP” knowledge like EBITDA and money EPS. Discovering and scrubbing this knowledge is time consuming work, and errors can considerably influence the output of an funding banker’s evaluation.
Capital IQ’s fleet of information scrubbers attempt to do it for you. Coupled with its killer app that enables analysts to click on again to audit the supply knowledge, this function largely explains Capital IQs enduring reputation within the funding banking world.
Click on-through to audit supply knowledge: One among its early killer apps was a function that enables analysts to click-through to audit supply knowledge. For instance, when a consumer needs to confirm that Capital IQ accurately arrived at Walmart’s EBITDA, he/she will be able to merely click on by means of from the portal to the supply paperwork.
Excel plugin: Capital IQ’s Excel plugin permits analysts to tug knowledge immediately into Excel. Whereas not as sturdy as FactSet’s Excel plugin, which has sturdy productiveness enhancing instruments like customized Excel formatting macros and PowerPoint presentation macros, Capital IQ has made strides in bridging the divide with some customized Excel shortcuts and formatting macros.
You completely should go along with Capital IQ if …
You’re on the go and have to entry monetary knowledge from quite a lot of computer systems. Whereas Bloomberg entry requires a devoted terminal and FactSet entry requires a software program set up on every machine, your Capital IQ account may be accessed from an internet browser wherever.
You possibly can most likely reside with out Capital IQ if …
Actual-time market knowledge isn’t vital in your job. That is the place Bloomberg (the king), together with FactSet and Thomson Reuters, are higher than Capital IQ. The sorts of roles the place this actually issues are on the purchase facet, in gross sales and buying and selling, and in public equities and glued earnings.
As of 2017, FactSet had 89,000 shoppers with complete income of roughly $1.3 billion, making it the fourth largest participant within the monetary knowledge house after Bloomberg, Thomson, and S&P (Capital IQ + SNL). Per FactSet’s 2017 10K, purchase facet shoppers accounted for 84.1% of income, whereas the rest got here from the promote facet (i.e. M&A, capital markets and fairness analysis).
The price of a FactSet subscription is $12,000 per yr for the total product.
FactSet is greatest for …
Funding bankers. FactSet is similar to Capital IQ by way of scope of information and performance. A lot of Capital IQ’s early energy has been bridged by FactSet, which now boasts its personal set of comprehensively scrubbed monetary knowledge, estimates and click-through performance.
You completely should go along with FactSet if …
Your life revolves round making pitchbooks. Whereas Capital IQ’s Excel CIQ codes are considerably simpler to work with, FactSet’s 2007 buy of DealMaven offers FactSet customers the flexibility to extend monetary modeling effectivity through useful formatting and customized macro shortcuts that Capital IQ hasn’t fairly caught as much as but. As well as, FactSet’s PowerPoint plugin permits bankers to automate a lot of the pitchbook presentation course of. One other often cited FactSet benefit over Capital IQ is the convenience of navigation and getting across the consumer interface.
You need to contemplate one thing apart from FactSet if …
You want fairness analysis. FactSet doesn’t provide sturdy fairness analysis entry. You possibly can, in fact, entry this by means of one other service, however if you need it multi function place, FactSet isn’t the suitable alternative. Maybe much more of a deterrent for some is that FactSet requires a bodily set up on every machine, and it is just allowed on two machines per subscription.
Capital IQ vs FactSet: Comparability of options that matter to funding bankers
Characteristic Benefit Basic knowledge, Estimates, Convention name transcripts S&P (Capital IQ +SNL) Actual time market knowledge FactSet Fairness Analysis S&P (Capital IQ +SNL) Consumer interface FactSet Distinctive knowledge units FactSet Transaction screening S&P (Capital IQ +SNL) Excel plugin FactSet Entry knowledge on a browser from any laptop S&P (Capital IQ +SNL) Value FactSet
Thomson Reuters Eikon
Thomson Reuters Value
Whereas Capital IQ differentiates itself on price, its give attention to elementary knowledge, and usefulness on the promote facet, Eikon is probably the most direct competitor to the Bloomberg Terminal. The price of Thomson Reuters’ Eikon is $22,000 per yr, however a really stripped down model can price as little as $3,600 per yr.
Thomson Reuters Eikon is greatest for …
Those that would in any other case purchase Bloomberg however need one thing cheaper. It has quite a lot of the identical monetary knowledge as Bloomberg however is usually thought of to be the lesser choice by way of knowledge breadth. To place it bluntly, it’s what you get junior workers if you wish to save prices whereas the senior of us are utilizing Bloomberg.
As well as, Eikon is widespread in Europe and the Center East, with the EMEA area accounting for 41% of its income. Americas was 40% and Asia Pacific was 19% (Supply: Thomson Reuters 2017 Factbook).
- PitchBook: Not like the opposite monetary knowledge suppliers, PitchBook is concentrated on non-public transactions and creating consumers lists.
- Mergermarket: A database of M&A transactions. Whereas Capital IQ and FactSet preserve giant M&A databases and have instruments for screening M&A and different transactions, Mergermarket is devoted to searching down particulars for M&A offers. As a result of it focuses on M&A, it’s not an alternative to FactSet’s or Capital IQ’s broad knowledge units and options. Fairly, it’s a complement when discovering historic transaction knowledge is vital to the job.
- The remainder: A rising variety of small startups try to disrupt the business with their very own particular options and and a decrease pricetag. For instance, Symphony is making an attempt to peel customers away from Bloomberg’s widespread instantaneous message service; Estimize needs to offer estimates to the lots by means of crowdsourcing; bnok.vn and bnok.vn are going after information, charting and actual time knowledge. Whereas their day would possibly come, they haven’t but meaningfully threatened the Huge 4. When severe finance professionals want monetary knowledge, most are nonetheless coughing up severe $$$ for one of many huge suppliers.