Head to Head Analysis: National (NHLD) and Intercontinental Exchange (ICE)

National (NASDAQ:NHLD) and Intercontinental Exchange (NYSE:ICE) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for National and Intercontinental Exchange, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National 0 0 0 0 N/A
Intercontinental Exchange 0 3 12 0 2.80

Intercontinental Exchange has a consensus price target of $84.00, indicating a potential upside of 15.42%. Given Intercontinental Exchange’s higher probable upside, analysts plainly believe Intercontinental Exchange is more favorable than National.

Dividends

Intercontinental Exchange pays an annual dividend of $0.96 per share and has a dividend yield of 1.3%. National does not pay a dividend. Intercontinental Exchange pays out 32.5% of its earnings in the form of a dividend. Intercontinental Exchange has increased its dividend for 5 consecutive years.

Profitability

This table compares National and Intercontinental Exchange’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National -5.45% -8.65% -5.57%
Intercontinental Exchange 43.09% 11.67% 2.39%

Earnings & Valuation

This table compares National and Intercontinental Exchange’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National $211.12 million 0.19 -$11.51 million N/A N/A
Intercontinental Exchange $5.83 billion 7.11 $2.51 billion $2.95 24.67

Intercontinental Exchange has higher revenue and earnings than National.

Insider & Institutional Ownership

13.7% of National shares are held by institutional investors. Comparatively, 88.9% of Intercontinental Exchange shares are held by institutional investors. 9.2% of National shares are held by company insiders. Comparatively, 1.5% of Intercontinental Exchange shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

National has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Intercontinental Exchange has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Summary

Intercontinental Exchange beats National on 11 of the 14 factors compared between the two stocks.

About National

National Holdings Corporation, through its subsidiaries, provides financial services in the United States. The company offers retail brokerage services include execution of purchases and sale of stocks, options, bonds, mutual funds, annuities, and various other securities; and investment advisory services for individual, corporate, and institutional clients. It also provides investment banking services, such as underwriting the sale of securities to the public in initial and follow-on offering, and arranging for the private placement of securities with investors; and financial and corporate advisory services comprising mergers and acquisitions, project financing, capital structure, and specific financing opportunities to micro, small, and mid-cap high growth companies. In addition, the company trades in securities, including making markets in micro and small-cap, NASDAQ, and other exchange listed stocks and provides liquidity in the United States Treasury marketplace. Further, it provides asset management advisory services to retail clients; fixed insurance products, including life insurance, disability insurance, long-term care insurance, and fixed annuities; and tax preparation services to individuals, primarily in the middle and upper income tax brackets, as well as accounting services to small and midsize companies. Additionally, the company offers licensed mortgage brokerage services; and investment products and services, which comprise stocks, bonds, mutual funds, annuities, insurance, and managed money accounts. The company was formerly known as Olympic Cascade Financial Corporation and changed its name to National Holdings Corporation in March 2006. The company was founded in 1947 and is headquartered in New York, New York. National Holdings Corporation is a subsidiary of FBIO Acquisition, Inc.

About Intercontinental Exchange

Intercontinental Exchange, Inc. operates regulated exchanges, clearing houses, and listings venues for financial and commodity markets in the United States, the United Kingdom, Continental Europe, Asia, Israel, and Canada. It operates through two segments, Trading and Clearing; and Data and Listings. The company operates marketplaces for listing, trading, and clearing an array of derivatives and securities contracts across various asset classes, including energy and agricultural commodities, interest rates, equities, equity and credit derivatives, exchange traded funds, bonds, and currencies. It also offers end-to-end data services and solutions to support the trading, investment, risk management, and connectivity needs of customers across major asset classes. The company operates exchanges and marketplaces, such as ICE Futures Europe, ICE Futures U.S., ICE Futures Canada, ICE Endex, ICE Futures Singapore, NYSE America Options, and NYSE Arca Options, as well as over-the-counter markets for physical energy and credit default swaps, and central counterparty clearing houses. Intercontinental Exchange, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia.

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