Yintech Investment (NASDAQ:YIN) vs. Intercontinental Exchange (ICE) Head-To-Head Comparison

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

Volatility & Risk

Intercontinental Exchange has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Yintech Investment has a beta of -1.15, suggesting that its stock price is 215% less volatile than the S&P 500.

Dividends

Intercontinental Exchange pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Yintech Investment pays an annual dividend of $0.80 per share and has a dividend yield of 8.7%. Intercontinental Exchange pays out 29.1% of its earnings in the form of a dividend. Yintech Investment pays out 46.2% 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. Yintech Investment has raised its dividend for 4 consecutive years. Yintech Investment is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intercontinental Exchange $5.96 billion 7.34 $1.42 billion $2.75 27.19
Yintech Investment $391.70 million 1.65 $134.04 million $1.73 5.34

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.

Institutional & Insider Ownership

90.0% of Intercontinental Exchange shares are owned by institutional investors. Comparatively, 1.3% of Yintech Investment shares are owned by institutional investors. 1.5% of Intercontinental Exchange shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

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

Analyst Ratings

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

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

Intercontinental Exchange presently has a consensus target price of $74.50, suggesting a potential downside of 0.37%. Yintech Investment has a consensus target price of $15.00, suggesting a potential upside of 62.34%. Given Yintech Investment’s stronger consensus rating and higher probable upside, analysts plainly believe Yintech Investment is more favorable than Intercontinental Exchange.

Summary

Intercontinental Exchange beats Yintech Investment on 11 of the 17 factors compared between the two stocks.

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.

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.

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