Head to Head Comparison: JMP Group (JMP) versus Oppenheimer (OPY)

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

Risk & Volatility

JMP Group has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Oppenheimer has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.



Profitability

This table compares JMP Group and Oppenheimer’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%
Oppenheimer 4.27% 7.91% 1.68%

Institutional & Insider Ownership

12.5% of JMP Group shares are owned by institutional investors. Comparatively, 46.3% of Oppenheimer shares are owned by institutional investors. 52.8% of JMP Group shares are owned by insiders. Comparatively, 25.9% of Oppenheimer shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares JMP Group and Oppenheimer’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JMP Group $109.87 million 0.95 -$15.88 million $0.20 24.45
Oppenheimer $920.34 million 0.43 $22.81 million N/A N/A

Oppenheimer has higher revenue and earnings than JMP Group.

Analyst Ratings

This is a summary of recent recommendations and price targets for JMP Group and Oppenheimer, as provided by MarketBeat.com.

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

JMP Group presently has a consensus target price of $6.75, suggesting a potential upside of 38.04%. Given JMP Group’s higher possible upside, research analysts clearly believe JMP Group is more favorable than Oppenheimer.

Dividends

JMP Group pays an annual dividend of $0.36 per share and has a dividend yield of 7.4%. Oppenheimer pays an annual dividend of $0.44 per share and has a dividend yield of 1.5%. 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.

Summary

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

JMP Group Company Profile

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.

Oppenheimer Company Profile

Oppenheimer Holdings Inc., through its subsidiaries, provides middle-market investment bank and full service broker-dealer products and services. The company offers full-service brokerage services covering exchange-traded and over-the-counter corporate equity and debt securities, money market instruments, exchange-traded options and futures contracts, municipal bonds, mutual funds, and unit investment trusts; financial and wealth planning services; and margin lending services. It also provides asset management services, including separately managed accounts, mutual fund managed accounts, discretionary portfolio management programs, fee-based non-discretionary investment advisory services, alternative investments, portfolio enhancement programs, investment advisory services, and institutional taxable fixed income portfolio management services. In addition, the company offers investment banking services, including strategic advisory services and capital markets products; and institutional equity sales and trading, equity research, equity derivatives and index options, convertible bonds, and event driven sales and trading services. Further, it provides institutional fixed income sales and trading, fixed income research, public finance, and municipal trading services; repurchase agreements and securities lending services; and proprietary trading and investment activities. Additionally, the company offers underwritings, market-making, and trust services. It serves high-net-worth individuals and families, corporate executives, small and mid-sized businesses, institutions and investment advisers, financial sponsors, and domestic and international investors in the Americas, Europe, the Middle East, and Asia. The company was founded in 1881 and is headquartered in New York, New York.

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