Yintech Investment (YIN) versus Intercontinental Exchange (ICE) Head-To-Head Survey

Yintech Investment (NASDAQ: YIN) and Intercontinental Exchange (NYSE:ICE) are both financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Yintech Investment and Intercontinental Exchange, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yintech Investment 0 0 1 0 3.00
Intercontinental Exchange 0 2 6 0 2.75

Yintech Investment presently has a consensus target price of $15.00, indicating a potential upside of 60.60%. Intercontinental Exchange has a consensus target price of $74.50, indicating a potential upside of 0.16%. Given Yintech Investment’s stronger consensus rating and higher probable upside, analysts clearly believe Yintech Investment is more favorable than Intercontinental Exchange.

Earnings and Valuation

This table compares Yintech Investment and Intercontinental Exchange’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yintech Investment $391.70 million 1.67 $134.04 million $1.81 5.16
Intercontinental Exchange $5.96 billion 7.30 $1.42 billion $2.75 27.05

Intercontinental Exchange has higher revenue and earnings than Yintech Investment. Yintech Investment is trading at a lower price-to-earnings ratio than Intercontinental Exchange, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

1.3% of Yintech Investment shares are held by institutional investors. Comparatively, 90.0% of Intercontinental Exchange shares are held by institutional investors. 1.5% of Intercontinental Exchange shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Yintech Investment and Intercontinental Exchange’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yintech Investment 27.84% 26.59% 22.91%
Intercontinental Exchange 27.91% 11.01% 2.18%

Dividends

Yintech Investment pays an annual dividend of $0.80 per share and has a dividend yield of 8.6%. Intercontinental Exchange pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Yintech Investment pays out 44.2% of its earnings in the form of a dividend. Intercontinental Exchange pays out 29.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Intercontinental Exchange has raised its dividend for 4 consecutive years.

Summary

Intercontinental Exchange beats Yintech Investment on 11 of the 16 factors compared between the two stocks.

About Yintech Investment

Yintech Investment Holdings Limited is an online provider of spot commodity trading services in China. The Company facilitates the trading by individual customers of silver, gold, and other precious metals and commodities on the Shanghai Gold Exchange, the Tianjin Precious Metals Exchange and the Guangdong Precious Metals Exchange. The Company provides its customers with various services, such as account opening, investor education, market information, research, live discussion boards and real-time customer support. On the Tianjin Precious Metals Exchange and the Guangdong Precious Metals Exchange, the Company serves as counterparty to its customers’ trades. On the Shanghai Gold Exchange, the Company serves as an agent and does not hold principal positions. The Company’s services include investor education, market information provision and research. Its research services include research reports, online lectures, live market commentaries and quantitative analysis.

About Intercontinental Exchange

Intercontinental Exchange Inc, formerly IntercontinentalExchange Group, Inc., is a network of regulated exchanges and clearing houses for financial and commodity markets. The Company delivers transparent and accessible data, technology and risk management services to markets around the world through its portfolio of exchanges, including the New York Stock Exchange, ICE Futures, Liffe and Euronext. In February 2014, the Company completed the acquisition of Singapore Mercantile Exchange. In July 2014, Intercontinental Exchange Inc sold its Wombat Financial Software, a unit of NYSE Technologies. Effective September 10, 2014, Intercontinental Exchange Inc acquired an undisclosed majority interest in Holland Clearing House NV.

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