FXCM (OTCMKTS:GLBR) and Diamond Hill Investment Group (NASDAQ:DHIL) Financial Analysis

Diamond Hill Investment Group (NASDAQ:DHIL) and FXCM (OTCMKTS:GLBR) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Risk and Volatility

Diamond Hill Investment Group has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, FXCM has a beta of -2.65, meaning that its share price is 365% less volatile than the S&P 500.

Insider & Institutional Ownership

65.5% of Diamond Hill Investment Group shares are held by institutional investors. 4.6% of Diamond Hill Investment Group shares are held by insiders. Comparatively, 9.0% of FXCM shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Diamond Hill Investment Group and FXCM, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamond Hill Investment Group	0	1	0	0	2.00
FXCM	0	0	0	0	0.00

Profitability

This table compares Diamond Hill Investment Group and FXCM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diamond Hill Investment Group	31.32%	20.71%	14.34%
FXCM	N/A	N/A	N/A

Earnings and Valuation

This table compares Diamond Hill Investment Group and FXCM”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamond Hill Investment Group	$151.10 million	3.03	$43.18 million	$17.22	9.81
FXCM	N/A	N/A	N/A	N/A	N/A

Diamond Hill Investment Group has higher revenue and earnings than FXCM.

Summary

Diamond Hill Investment Group beats FXCM on 7 of the 8 factors compared between the two stocks.

About Diamond Hill Investment Group

Diamond Hill Investment Group, Inc., through its subsidiary, Diamond Hill Capital Management, Inc., provides investment advisory and fund administration services in the United States. It offers investment advisory and related services to clients through pooled vehicles, such as private fund; separately managed accounts; collective investment trusts; and other pooled vehicles, including sub-advised funds and model delivery programs. The company also provides fund administration services comprising portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the funds, as well as oversight of back-office service providers, which include the custodian, fund accountant, and transfer agent. Diamond Hill Investment Group, Inc. was incorporated in 1990 and is based in Columbus, Ohio.

About FXCM

Global Brokerage, Inc., through its subsidiaries, provides online foreign exchange (FX) trading, contracts for difference trading, spread betting, and related services to retail and institutional customers worldwide. Its proprietary trading platform presents its FX customers with the price quotations on various currency pairs from a range of global banks, financial institutions, and market makers. The company also acts as a credit intermediary and simultaneously entering into trades with the customer and the FX market maker. It offers its customers access to over-the-counter FX markets. The company was formerly known as FXCM Inc. and changed its name to Global Brokerage, Inc. in February 2017. Global Brokerage, Inc. was incorporated in 2010 and is based in New York, New York. On March 23, 2023, an involuntary petition for liquidation under Chapter 7 was filed against Global Brokerage, Inc. in the U.S. Bankruptcy Court for the Southern District of New York. On May 19, 2023, the involuntary petition was approved by the Court.