Interactive Brokers Group (NASDAQ: IBKR) and Virtu Financial (NASDAQ:VIRT) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitabiliy, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.
This is a summary of current ratings and recommmendations for Interactive Brokers Group and Virtu Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Interactive Brokers Group||1||4||0||0||1.80|
Interactive Brokers Group presently has a consensus target price of $38.60, suggesting a potential downside of 4.38%. Virtu Financial has a consensus target price of $14.50, suggesting a potential downside of 9.94%. Given Interactive Brokers Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Interactive Brokers Group is more favorable than Virtu Financial.
This table compares Interactive Brokers Group and Virtu Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Interactive Brokers Group||4.97%||1.19%||0.13%|
Interactive Brokers Group pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Virtu Financial pays an annual dividend of $0.96 per share and has a dividend yield of 6.0%. Interactive Brokers Group pays out 38.8% of its earnings in the form of a dividend. Virtu Financial pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
14.3% of Interactive Brokers Group shares are owned by institutional investors. Comparatively, 43.9% of Virtu Financial shares are owned by institutional investors. 3.4% of Interactive Brokers Group shares are owned by company insiders. Comparatively, 69.9% of Virtu Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Interactive Brokers Group has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Virtu Financial has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.
Valuation & Earnings
This table compares Interactive Brokers Group and Virtu Financial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Interactive Brokers Group||$1.34 billion||2.08||$71.16 million||$1.03||39.19|
|Virtu Financial||$567.89 million||1.15||$29.28 million||$0.72||22.36|
Interactive Brokers Group has higher revenue and earnings than Virtu Financial. Virtu Financial is trading at a lower price-to-earnings ratio than Interactive Brokers Group, indicating that it is currently the more affordable of the two stocks.
Interactive Brokers Group beats Virtu Financial on 10 of the 15 factors compared between the two stocks.
Interactive Brokers Group Company Profile
Interactive Brokers Group, Inc. (IBG, Inc.) is a holding company. The Company is an automated global electronic broker and market maker specializing in routing orders, and executing and processing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on over 120 electronic exchanges and market centers around the world and offering custody, prime brokerage, securities and margin lending services to customers. It operates in two segments: electronic brokerage and market making. It conducts its electronic brokerage business through its Interactive Brokers (IB) subsidiaries. It conducts its market making business through its Timber Hill (TH) subsidiaries. In the United States, it conducts its business from Greenwich, Connecticut and Chicago, Illinois. Outside the United States, it conducts business in Canada, England, Switzerland, Liechtenstein, China (Hong Kong and Shanghai), India, Australia and Japan.
Virtu Financial Company Profile
Virtu Financial, Inc. is a holding company. The Company is a technology-enabled market maker and liquidity provider to the financial markets across the world. It is engaged in buying or selling a range of securities and other financial instruments and earning small bid/ask spreads across various transactions. It has a single, multi-asset, multi-currency technology platform, through which it provides quotations to buyers and sellers in equities, commodities, currencies, options, fixed income and other securities on exchanges, markets and liquidity pools in various countries around the world. It makes markets in a range of different assets classes, such as Americas Equities; Europe, the Middle East and Africa (EMEA) Equities; Asia Pacific (APAC) Equities; Global Commodities; Global Currencies, and Options, Fixed Income and Other Securities. It makes markets for global banks, brokers and other intermediaries, and indirectly provides services to retail and institutional investors.
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