Jefferies Financial Group (NYSE:JEF) vs. The Ziegler Companies (OTCMKTS:ZGCO) Critical Analysis

Jefferies Financial Group (NYSE:JEF) and The Ziegler Companies (OTCMKTS:ZGCO) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Jefferies Financial Group and The Ziegler Companies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jefferies Financial Group 0 0 2 0 3.00
The Ziegler Companies 0 0 0 0 N/A

Jefferies Financial Group currently has a consensus price target of $30.50, indicating a potential downside of 16.78%. Given Jefferies Financial Group’s higher probable upside, research analysts clearly believe Jefferies Financial Group is more favorable than The Ziegler Companies.

Volatility and Risk

Jefferies Financial Group has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, The Ziegler Companies has a beta of -0.01, suggesting that its share price is 101% less volatile than the S&P 500.

Institutional and Insider Ownership

68.4% of Jefferies Financial Group shares are held by institutional investors. 17.1% of Jefferies Financial Group shares are held by insiders. Comparatively, 32.8% of The Ziegler Companies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Jefferies Financial Group and The Ziegler Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jefferies Financial Group 19.62% 16.08% 2.84%
The Ziegler Companies N/A N/A N/A

Earnings and Valuation

This table compares Jefferies Financial Group and The Ziegler Companies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jefferies Financial Group $6.01 billion 1.51 $775.24 million $2.65 13.83
The Ziegler Companies N/A N/A N/A N/A N/A

Jefferies Financial Group has higher revenue and earnings than The Ziegler Companies.

Summary

Jefferies Financial Group beats The Ziegler Companies on 8 of the 9 factors compared between the two stocks.

About Jefferies Financial Group

Jefferies Financial Group, Inc. is a holding company, which engages in the provision of financial services. It operates through the following segments: Investment Banking, Capital Markets, and Asset Management; Merchant Banking; and Corporate segments. The Investment Banking, Capital Markets, and Asset Management segment consists of investments in Jefferies Group. The Merchant Banking segment includes various merchant banking businesses and investments, primarily including Linkem, Vitesse Energy Finance and JETX Energy, real estate, Idaho Timber, and FXCM. The Corporate segment pertains to cash and cash equivalents, financial instruments owned, and deferred tax asset of the firm. The company was founded in 1968 and is headquartered in New York, NY.

About The Ziegler Companies

Ziegler Cos., Inc. engages in the provision of investment banking services for the healthcare, senior living, religion, and education sectors. It operates through the following segments: Institutional, Wealth Management, and Corporate. The Institutional segment consists of investment banking, corporate finance, financial advisory, fixed income institutional sales and trading, private placement, and financial services. The Wealth Management segment offers financial products and financial planning services through its retail branch distribution network. The Corporate segment includes company’s proprietary investing and financing activities. The company was founded by Ben Ziegler in 1902 and is headquartered in Chicago, IL.

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