Siebert Financial (SIEB) & Virtu Financial (VIRT) Critical Contrast

Siebert Financial (NASDAQ:SIEB) and Virtu Financial (NASDAQ:VIRT) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Siebert Financial and Virtu Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Siebert Financial 0 0 0 0 N/A
Virtu Financial 0 7 3 0 2.30

Virtu Financial has a consensus target price of $29.70, suggesting a potential upside of 20.10%. Given Virtu Financial’s higher possible upside, analysts plainly believe Virtu Financial is more favorable than Siebert Financial.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Siebert Financial $13.11 million 26.39 $2.15 million N/A N/A
Virtu Financial $1.02 billion 4.57 $2.93 million $0.57 43.39

Virtu Financial has higher revenue and earnings than Siebert Financial.

Dividends

Virtu Financial pays an annual dividend of $0.96 per share and has a dividend yield of 3.9%. Siebert Financial does not pay a dividend. Virtu Financial pays out 168.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Siebert Financial has a beta of -0.44, indicating that its stock price is 144% less volatile than the S&P 500. Comparatively, Virtu Financial has a beta of -0.94, indicating that its stock price is 194% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Siebert Financial 25.77% 90.11% 75.71%
Virtu Financial 12.32% 19.85% 3.66%

Institutional and Insider Ownership

3.8% of Siebert Financial shares are owned by institutional investors. Comparatively, 55.6% of Virtu Financial shares are owned by institutional investors. 67.9% of Siebert Financial shares are owned by company insiders. Comparatively, 73.5% of Virtu Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Virtu Financial beats Siebert Financial on 7 of the 13 factors compared between the two stocks.

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.

About Virtu Financial

Virtu Financial, Inc. engages in the business of buying and selling of securities and other financial instruments. It offers market making and trading solutions. The company was founded by Vincent Viola in 2008 and is headquartered in New York, NY.

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