Charles Schwab (SCHW) & Siebert Financial (SIEB) Critical Analysis

Charles Schwab (NYSE:SCHW) and Siebert Financial (NASDAQ:SIEB) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Charles Schwab 35.27% 20.79% 1.33%
Siebert Financial 39.83% 107.30% 93.82%

Risk & Volatility

Charles Schwab has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Siebert Financial has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Charles Schwab and Siebert Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Charles Schwab 1 4 9 0 2.57
Siebert Financial 0 0 0 0 N/A

Charles Schwab presently has a consensus target price of $53.54, suggesting a potential upside of 17.53%. Given Charles Schwab’s higher probable upside, equities research analysts plainly believe Charles Schwab is more favorable than Siebert Financial.

Earnings and Valuation

This table compares Charles Schwab and Siebert Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Charles Schwab $10.13 billion 6.00 $3.51 billion $2.45 18.60
Siebert Financial $30.04 million 10.25 $11.96 million N/A N/A

Charles Schwab has higher revenue and earnings than Siebert Financial.

Dividends

Charles Schwab pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. Siebert Financial does not pay a dividend. Charles Schwab pays out 27.8% of its earnings in the form of a dividend. Charles Schwab has raised its dividend for 3 consecutive years.

Insider & Institutional Ownership

80.1% of Charles Schwab shares are owned by institutional investors. Comparatively, 4.0% of Siebert Financial shares are owned by institutional investors. 10.9% of Charles Schwab shares are owned by company insiders. Comparatively, 67.9% of Siebert Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Charles Schwab beats Siebert Financial on 8 of the 15 factors compared between the two stocks.

About Charles Schwab

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor, retirement plan, and mutual fund clearing services. The Advisor Services segment provides custodial, trading, and support services; and retirement business and corporate brokerage retirement services. This segment provides brokerage accounts with cash management capabilities; third-party mutual funds, as well as proprietary mutual funds, plus mutual fund trading, and clearing services to broker-dealers; and exchange-traded funds (ETFs), including proprietary and third-party ETFs. It also offers advice solutions, such as managed portfolios of proprietary and third-party mutual funds and ETFs, separately managed accounts, customized personal advice for tailored portfolios, and specialized planning and portfolio management. In addition, this segment provides banking products and services, including checking and savings accounts, certificates of deposit, first lien residential real estate mortgage loans, home equity loans and lines of credit, and pledged asset lines; and trust services comprising trust custody services, personal trust reporting services, and administrative trustee services. The company serves individuals and institutional clients in the United States, the Commonwealth of Puerto Rico, England, Hong Kong, Singapore, and Australia. The Charles Schwab Corporation was founded in 1971 and 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.

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



Comments


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on reddit