Comparing Investment Technology Group (ITG) & Stifel Financial (SF)

Stifel Financial (NYSE: SF) and Investment Technology Group (NYSE:ITG) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a summary of recent ratings and target prices for Stifel Financial and Investment Technology Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stifel Financial 0 1 4 0 2.80
Investment Technology Group 0 0 2 0 3.00

Stifel Financial presently has a consensus price target of $76.33, indicating a potential upside of 35.46%. Investment Technology Group has a consensus price target of $21.00, indicating a potential downside of 2.78%. Given Stifel Financial’s higher possible upside, analysts plainly believe Stifel Financial is more favorable than Investment Technology Group.

Profitability

This table compares Stifel Financial and Investment Technology Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stifel Financial 6.87% 13.14% 1.73%
Investment Technology Group -8.17% 3.88% 1.76%

Valuation and Earnings

This table compares Stifel Financial and Investment Technology Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stifel Financial $2.93 billion 1.38 $182.87 million $3.99 14.12
Investment Technology Group $483.69 million 1.47 -$39.44 million $0.30 72.00

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

Dividends

Stifel Financial pays an annual dividend of $0.48 per share and has a dividend yield of 0.9%. Investment Technology Group pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. Stifel Financial pays out 12.0% of its earnings in the form of a dividend. Investment Technology Group pays out 93.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

87.0% of Stifel Financial shares are owned by institutional investors. Comparatively, 85.1% of Investment Technology Group shares are owned by institutional investors. 5.1% of Stifel Financial shares are owned by insiders. Comparatively, 3.0% of Investment Technology Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Stifel Financial has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500. Comparatively, Investment Technology Group has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Summary

Stifel Financial beats Investment Technology Group on 11 of the 16 factors compared between the two stocks.

Stifel Financial Company Profile

Stifel Financial Corp., a financial services and bank holding company, provides retail and institutional wealth management, and investment banking services to individual investors, corporations, municipalities, and institutions in the United States, the United Kingdom, and rest of Europe. The company operates through three segments: Global Wealth Management, Institutional Group, and Other. It provides private client services, including securities transaction and financial planning services; institutional equity and fixed income sales, trading and research, and municipal finance services; investment banking services, such as mergers and acquisitions, public offerings, and private placements; and retail and commercial banking services comprising personal and commercial lending programs, as well as deposit accounts. The company also manages and participates in underwritings for corporate and public finance. Stifel Financial Corp. was founded in 1890 and is headquartered in St. Louis, Missouri.

Investment Technology Group Company Profile

Investment Technology Group, Inc. operates as a financial technology company in the United States, Canada, Europe, and the Asia Pacific. The company offers various solutions for asset managers and broker-dealers in the areas of execution services, workflow technology, and analytics that provide trade execution services and solutions for portfolio management, as well as pre-trade analytics, and post-trade analytics and processing. The company's products include POSIT, a point-in-time electronic crossing network for equity orders and price improvement opportunities; algorithms and smart order routers that offers portfolio managers and traders a way to trade orders; and single stock and portfolio trading, as well as derivatives execution and technology services focusing on sell-side clients, professional traders, and select hedge funds. It also provides Execution Management System, which offers execution and analytical tools for global list-based and single-stock trading, futures and options, and a financial services communications network; and Order Management System that combines portfolio management and compliance functionality. In addition, the company provides ITG Net, a financial communications network; RFQ-hub, a multi-asset platform for financial instruments; Single Ticket Clearing, a broker-neutral operational service; and Commission Manager, a Web-based commission management portal. Further, it offers Trading Analytics, which enables portfolio managers and traders to enhance execution performance through trading analytics and risk models; and Portfolio Analytics that assists asset managers with portfolio decision-making tasks from portfolio construction and optimization. Additionally, the company provides software development and maintenance services; and workflow technology solutions and network connectivity services for the financial community. Investment Technology Group, Inc. was founded in 1983 and is headquartered in New York, New York.

Receive News & Ratings for Stifel Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stifel Financial and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply