Associated Capital Group (AC) and Virtu Financial (VIRT) Financial Analysis

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.

Profitability

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%
Virtu Financial 15.39% 24.62% 4.82%



Analyst Ratings

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
Virtu Financial 0 6 4 0 2.40

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.

Dividends

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.

Summary

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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