B. Riley Financial (RILY) and Broadridge Financial Solutions (BR) Critical Contrast

B. Riley Financial (NASDAQ: RILY) and Broadridge Financial Solutions (NYSE:BR) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Earnings & Valuation

This table compares B. Riley Financial and Broadridge Financial Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
B. Riley Financial $322.18 million 1.84 $11.55 million N/A N/A
Broadridge Financial Solutions $4.14 billion 3.26 $326.80 million $3.13 36.59

Broadridge Financial Solutions has higher revenue and earnings than B. Riley Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
B. Riley Financial 0.56% 12.71% 2.48%
Broadridge Financial Solutions 9.37% 45.33% 14.79%

Dividends

B. Riley Financial pays an annual dividend of $0.32 per share and has a dividend yield of 1.4%. Broadridge Financial Solutions pays an annual dividend of $1.46 per share and has a dividend yield of 1.3%. Broadridge Financial Solutions pays out 46.6% of its earnings in the form of a dividend. Broadridge Financial Solutions has raised its dividend for 10 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for B. Riley Financial and Broadridge Financial Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
B. Riley Financial 0 0 0 0 N/A
Broadridge Financial Solutions 0 4 0 0 2.00

Broadridge Financial Solutions has a consensus price target of $97.67, suggesting a potential downside of 14.72%. Given Broadridge Financial Solutions’ higher possible upside, analysts clearly believe Broadridge Financial Solutions is more favorable than B. Riley Financial.

Insider & Institutional Ownership

47.0% of B. Riley Financial shares are held by institutional investors. Comparatively, 84.6% of Broadridge Financial Solutions shares are held by institutional investors. 24.2% of B. Riley Financial shares are held by company insiders. Comparatively, 2.6% of Broadridge Financial Solutions shares are held by company 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

B. Riley Financial has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Broadridge Financial Solutions has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Summary

Broadridge Financial Solutions beats B. Riley Financial on 11 of the 14 factors compared between the two stocks.

About B. Riley Financial

B. Riley Financial, Inc. provides financial services and solutions in North America, Australia, and Europe. The company operates in four segments: Capital Markets, Auction and Liquidation, Valuation and Appraisal, and Principal Investments – United Online. It offers investment banking services, including merger and acquisitions, restructuring advisory, initial and secondary public offerings, and institutional private placements; and corporate finance, research, securities lending, wealth management, and sales and trading services to corporate, institutional, and high net worth clients. The company also provides retail store liquidation, and wholesale and industrial assets disposition services; valuation and appraisal services to financial institutions, lenders, private equity firms, and other providers of capital; and consumer subscription services consisting of Internet access services under the NetZero and Juno brands, as well as email, Internet security, Web hosting, and other services. In addition, it offers advisory services to private funds, and institutional and high net worth investors; multi-family office practice and wealth management services to ultra-high net worth individuals and families; and senior secured and second lien secured loans to middle market public and the private U.S. companies. The company was formerly known as Great American Group, Inc. and changed its name to B. Riley Financial, Inc. in November 2014. B. Riley Financial, Inc. was founded in 1973 and is headquartered in Woodland Hills, California.

About Broadridge Financial Solutions

Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry worldwide. The company's Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote processing services; and offers ProxyEdge, an electronic proxy delivery and voting solution. It also provides registered proxy, registrar, stock transfer, and record-keeping services to corporations; and distributes regulatory reports and corporate action/reorganization event information, and tax reporting solutions. In addition, this segment offers customer communication solutions, including processing and distributing its clients' transactional, regulatory, and marketing communications through print and digital channels. Further, it provides cloud-based marketing and customer communication tools, as well as customer and account data aggregation and reporting services; and creates sales and educational content, including seminars and a library of financial planning topics, as well as customizable advisor Websites, search engine marketing, and electronic and print newsletters. Additionally, this segment offers mutual fund and retirement, and mutual fund trade processing services. Its Global Technology and Operations segment offers computerized real-time transaction processing services that include desktop productivity tools, data aggregation, performance reporting, portfolio management, order capture and execution, trade confirmation, settlement, reference data, reconciliations, and accounting; multi-currency solutions to support real-time global trading; and managed services solutions, which comprise securities clearing, record-keeping, and custody-related functions. The company was founded in 1962 and is headquartered in Lake Success, New York.

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