Analyzing Binah Capital Group (NASDAQ:BCG) & Victory Capital (NASDAQ:VCTR)

Binah Capital Group (NASDAQ:BCG) and Victory Capital (NASDAQ:VCTR) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Valuation & Earnings

This table compares Binah Capital Group and Victory Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Binah Capital Group	$187.14 million	0.14	$2.31 million	$0.14	11.43
Victory Capital	$1.31 billion	4.00	$330.06 million	$4.44	18.84

Victory Capital has higher revenue and earnings than Binah Capital Group. Binah Capital Group is trading at a lower price-to-earnings ratio than Victory Capital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Binah Capital Group and Victory Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Binah Capital Group	1.70%	260.70%	4.59%
Victory Capital	25.79%	22.15%	12.68%

Risk & Volatility

Binah Capital Group has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Victory Capital has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Insider and Institutional Ownership

5.0% of Binah Capital Group shares are owned by institutional investors. Comparatively, 87.7% of Victory Capital shares are owned by institutional investors. 1.9% of Binah Capital Group shares are owned by company insiders. Comparatively, 9.5% of Victory Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Binah Capital Group and Victory Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Binah Capital Group	1	0	0	0	1.00
Victory Capital	0	4	5	0	2.56

Victory Capital has a consensus price target of $82.71, indicating a potential downside of 1.12%. Given Victory Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Victory Capital is more favorable than Binah Capital Group.

Summary

Victory Capital beats Binah Capital Group on 13 of the 14 factors compared between the two stocks.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.

About Victory Capital

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an asset management company in the United States and internationally. It offers investment advisory, fund administration, fund compliance, fund transfer agent, fund distribution, and other management services. The company provides specialized investment strategies to institutions, intermediaries, retirement platforms, and individual investors. Its investment products include actively and passively managed mutual funds; rules-based and active exchange traded funds; institutional separate accounts; variable insurance products; alternative investments; and private closed-end funds; and a 529 Education Savings Plan. The company also offers strategies through third-party investment products, including mutual funds, third-party ETF model strategies, retail separately managed accounts, unified managed accounts through wrap account programs, Collective Investment Trusts, and undertakings for the collective investment in transferable securities. Victory Capital Holdings, Inc. was incorporated in 2013 and is based in San Antonio, Texas.