Reviewing B. Riley Financial (RILY) and Its Peers

B. Riley Financial (NASDAQ: RILY) is one of 94 public companies in the “Business Support Services” industry, but how does it weigh in compared to its peers? We will compare B. Riley Financial to related companies based on the strength of its institutional ownership, risk, earnings, valuation, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a summary of current recommendations and price targets for B. Riley Financial and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
B. Riley Financial 0 0 0 0 N/A
B. Riley Financial Competitors 547 1630 2535 66 2.44

As a group, “Business Support Services” companies have a potential upside of 9.07%. Given B. Riley Financial’s peers higher probable upside, analysts plainly believe B. Riley Financial has less favorable growth aspects than its peers.

Profitability

This table compares B. Riley Financial and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
B. Riley Financial 9.87% 17.98% 4.82%
B. Riley Financial Competitors -20.11% -19.52% 1.35%

Risk and Volatility

B. Riley Financial has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, B. Riley Financial’s peers have a beta of 1.10, meaning that their average stock price is 10% more volatile than the S&P 500.

Dividends

B. Riley Financial pays an annual dividend of $0.32 per share and has a dividend yield of 1.7%. B. Riley Financial pays out 21.2% of its earnings in the form of a dividend. As a group, “Business Support Services” companies pay a dividend yield of 1.1% and pay out 27.2% of their earnings in the form of a dividend. B. Riley Financial is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

46.3% of B. Riley Financial shares are owned by institutional investors. Comparatively, 62.4% of shares of all “Business Support Services” companies are owned by institutional investors. 30.9% of B. Riley Financial shares are owned by company insiders. Comparatively, 12.7% of shares of all “Business Support Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares B. Riley Financial and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
B. Riley Financial $190.35 million $21.52 million 12.32
B. Riley Financial Competitors $1.29 billion $105.13 million 1,293.66

B. Riley Financial’s peers have higher revenue and earnings than B. Riley Financial. B. Riley Financial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

About B. Riley Financial

B. Riley Financial, Inc. is an independent investment bank. The Company’s segments include capital markets, auction and liquidation, valuation and appraisal, and Principal Investments-United Online. The capital markets segment provides an array of investment banking, corporate finance, research, wealth management, sales and trading services to corporate, institutional and high net worth clients. The auction and liquidation segment utilizes a scalable network of independent contractors and industry-specific advisors to tailor its services to the needs of a multitude of clients, logistical challenges and distressed circumstances. The valuation and appraisal segment provides valuation and appraisal services to financial institutions, lenders, private equity firms and other providers of capital. The principal investments-United Online segment consists of businesses, which has been acquired primarily for attractive investment return characteristics.

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