Investment Technology Group (NYSE:ITG) & The Competition Head-To-Head Contrast

Investment Technology Group (NYSE: ITG) is one of 17 public companies in the “Investment Banking” industry, but how does it contrast to its rivals? We will compare Investment Technology Group to similar companies based on the strength of its institutional ownership, risk, valuation, earnings, dividends, analyst recommendations and profitability.

Risk and Volatility

Investment Technology Group has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Investment Technology Group’s rivals have a beta of 1.20, indicating that their average share price is 20% more volatile than the S&P 500.

Institutional & Insider Ownership

86.6% of Investment Technology Group shares are owned by institutional investors. Comparatively, 56.5% of shares of all “Investment Banking” companies are owned by institutional investors. 2.4% of Investment Technology Group shares are owned by company insiders. Comparatively, 18.9% of shares of all “Investment Banking” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Investment Technology Group and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Investment Technology Group $469.05 million -$25.91 million -19.32
Investment Technology Group Competitors $902.64 million $129.13 million 309.03

Investment Technology Group’s rivals have higher revenue and earnings than Investment Technology Group. Investment Technology Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for Investment Technology Group and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Investment Technology Group 0 1 0 0 2.00
Investment Technology Group Competitors 62 339 320 26 2.41

Investment Technology Group currently has a consensus price target of $21.00, suggesting a potential upside of 14.44%. As a group, “Investment Banking” companies have a potential downside of 19.06%. Given Investment Technology Group’s higher probable upside, research analysts clearly believe Investment Technology Group is more favorable than its rivals.

Profitability

This table compares Investment Technology Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Investment Technology Group -6.57% 2.92% 1.37%
Investment Technology Group Competitors 3.43% 6.24% 4.78%

Dividends

Investment Technology Group pays an annual dividend of $0.28 per share and has a dividend yield of 1.5%. Investment Technology Group pays out -29.5% of its earnings in the form of a dividend. As a group, “Investment Banking” companies pay a dividend yield of 2.5% and pay out -254.0% of their earnings in the form of a dividend. Investment Technology Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Investment Technology Group rivals beat Investment Technology Group on 12 of the 15 factors compared.

About Investment Technology Group

Investment Technology Group, Inc. (ITG) is a financial technology company that helps brokers and asset managers improve returns for investors around the world. The Company operates through four segments: U.S. Operations, Canadian Operations, European Operations and Asia Pacific Operations. These four segments provide categories of products and services, such as Execution Services, Workflow Technology and Analytics. Execution Services includes self-directed trading using algorithms, smart routing and matching through POSIT in cash equities, futures and options trading and portfolio trading and high-touch trading desks providing execution expertise. Workflow Technology includes trade order and execution management software applications in addition to network connectivity. Analytics includes tools enabling portfolio managers and traders to improve pre-trade, real-time and post-trade execution performance; portfolio construction and optimization decisions, and securities valuation.

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