Associated Capital Group (NYSE:AC) and Virtu Financial (NASDAQ:VIRT) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
This table compares Associated Capital Group and Virtu Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Associated Capital Group||-255.05%||-4.05%||-3.70%|
This is a summary of current ratings and target prices for Associated Capital Group and Virtu Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Associated Capital Group||0||2||1||0||2.33|
Associated Capital Group currently has a consensus price target of $40.33, indicating a potential downside of 1.17%. Virtu Financial has a consensus price target of $29.50, indicating a potential upside of 16.97%. Given Virtu Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Virtu Financial is more favorable than Associated Capital Group.
Earnings & Valuation
This table compares Associated Capital Group and Virtu Financial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Associated Capital Group||$22.78 million||40.49||-$58.10 million||N/A||N/A|
|Virtu Financial||$1.88 billion||2.55||$289.44 million||$1.96||12.87|
Virtu Financial has higher revenue and earnings than Associated Capital Group.
Associated Capital Group pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Virtu Financial pays an annual dividend of $0.96 per share and has a dividend yield of 3.8%. Virtu Financial pays out 49.0% of its earnings in the form of a dividend.
Insider & Institutional Ownership
11.7% of Associated Capital Group shares are held by institutional investors. Comparatively, 55.7% of Virtu Financial shares are held by institutional investors. 82.2% of Associated Capital Group shares are held by company insiders. Comparatively, 73.5% of Virtu Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Associated Capital Group has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Virtu Financial has a beta of -0.73, indicating that its stock price is 173% less volatile than the S&P 500.
Virtu Financial beats Associated Capital Group on 10 of the 14 factors compared between the two stocks.
About Associated Capital Group
Associated Capital Group, Inc. provides investment advisory and asset management services in the United States. It offers alternative investment management, institutional research, and underwriting services. The company was founded in 2015 and is headquartered in Rye, New York.
About Virtu Financial
Virtu Financial, Inc., together with its subsidiaries, provides market making and liquidity services through its proprietary, multi-asset, and multi-currency technology platform to the financial markets worldwide. The company's Market Making segment principally consists of market making in the cash, futures, and options markets across equities, options, fixed income, currencies, and commodities. Its Execution Services segment comprises agency-based trading and trading venues, which offer execution services in equities, ETFs, futures, and fixed income to institutions, banks, and broker dealers. Virtu Financial, Inc. was founded in 2008 and is headquartered in New York, New York.
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