FactSet (tkr: FDS), has all of the tools – more precisely data sets – to compete with ZoomInfo (tkr: ZI), and to potentially close the valuation gap between the two companies. FactSet’s platform includes data sets that are more robust than their ZoomInfo counterparts (with the exception of executive profile data), and could therefore challenge ZoomInfo in the “Sales / Market Intelligence” market. There is not a structural reason preventing FactSet from competing with ZoomInfo. However, FactSet’s conservative culture is such that we believe it unlikely that the company would pursue this new market opportunity.
This would not be the first time that an overly risk-averse CEO and corporate culture prevented a company from pursuing new, logical growth opportunities. This “opportunity cost” factor is inherent in overly risk-averse CEOs. It is a reason why we believe CEO Personality Traits are a useful tool in predicting the probability of a given CEO to drive long-term success (as measured by a number of metrics) for a particular company.
- Our recent podcast episode covering CEO Personality: HERE.
- Our CEO Personality Analysis for Mid-Cap Software companies: HERE.
- High-level risk analysis of former ACIW CEO Phil Heasley: HERE.