Head to Head Review: JMP Group (JMP) vs. Siebert Financial (SIEB)

JMP Group (NYSE:JMP) and Siebert Financial (NASDAQ:SIEB) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Insider & Institutional Ownership

12.5% of JMP Group shares are held by institutional investors. Comparatively, 2.9% of Siebert Financial shares are held by institutional investors. 52.8% of JMP Group shares are held by insiders. Comparatively, 67.9% of Siebert Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares JMP Group and Siebert Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JMP Group $109.87 million 0.97 -$15.88 million $0.20 24.90
Siebert Financial $13.11 million 28.07 $2.15 million N/A N/A

Siebert Financial has lower revenue, but higher earnings than JMP Group.

Volatility and Risk

JMP Group has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Siebert Financial has a beta of -0.43, indicating that its stock price is 143% less volatile than the S&P 500.

Dividends

JMP Group pays an annual dividend of $0.36 per share and has a dividend yield of 7.2%. Siebert Financial does not pay a dividend. JMP Group pays out 180.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for JMP Group and Siebert Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JMP Group 0 1 1 0 2.50
Siebert Financial 0 0 0 0 N/A

JMP Group currently has a consensus price target of $6.75, suggesting a potential upside of 35.54%. Given JMP Group’s higher possible upside, equities research analysts clearly believe JMP Group is more favorable than Siebert Financial.

Profitability

This table compares JMP Group and Siebert Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JMP Group -2.51% 6.65% 0.62%
Siebert Financial 22.05% 82.77% 69.04%

Summary

Siebert Financial beats JMP Group on 8 of the 14 factors compared between the two stocks.

About JMP Group

JMP Group LLC, together with its subsidiaries, provides investment banking, sales and trading, equity research, and asset management products and services in the United States. The company operates through three segments: Broker-Dealer, Asset Management, and Corporate. The Broker-Dealer segment offers various services, such as underwriting and acting as a placement agent for public and private capital markets raising transactions; and financial advisory services in mergers and acquisitions, restructuring, and other strategic transactions. This segment also provides institutional brokerage services and equity research services. The Asset Management segment is involved in the management of a range of pooled investment vehicles, including the hedge funds, hedge funds of funds, and collateralized loan obligations. The Corporate segment includes investments in public and private securities, and investment funds, as well as other investing activities. The company also provides investment advisory services to business development companies. In addition, it serves corporates, institutional clients and investors, and high net-worth individuals. JMP Group LLC is headquartered in San Francisco, California.

About Siebert Financial

Siebert Financial Corp., through its subsidiaries, engages in the retail discount brokerage and investment advisory businesses. The company offers online and traditional brokerage, and related services to retail investors through a broker on the telephone, a wireless device, or through the Internet; various value added services, such as access to account information; independent retail execution services; and retail customer services. It also acts as an agent on various transactions for its self-directed retirement accounts, as well as lends customers a portion of the market value of certain securities held in the customer's account. In addition, the company provides custodial services; and data technology platform that offers services, such as email and messaging, market data systems and third party trading systems, business productivity tools, and customer relationship management systems. It maintains 10 retail discount brokerage offices. The company was founded in 1886 and is headquartered in New York, New York.

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