Analyzing UBS Group (UBS) & Its Peers

UBS Group (NYSE:UBS) is one of 1,744 publicly-traded companies in the “Capital Markets” industry, but how does it weigh in compared to its peers? We will compare UBS Group to similar businesses based on the strength of its risk, valuation, institutional ownership, profitability, earnings, dividends and analyst recommendations.

Risk and Volatility

UBS Group has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, UBS Group’s peers have a beta of 0.80, suggesting that their average stock price is 20% less volatile than the S&P 500.

Profitability

This table compares UBS Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UBS Group	13.36%	10.77%	0.58%
UBS Group Competitors	318.34%	79.19%	3.72%

Institutional & Insider Ownership

30.5% of shares of all “Capital Markets” companies are owned by institutional investors. 1.0% of UBS Group shares are owned by company insiders. Comparatively, 13.0% of shares of all “Capital Markets” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

UBS Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. UBS Group pays out 11.9% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.1% and pay out 30.0% of their earnings in the form of a dividend. UBS Group has raised its dividend for 5 consecutive years.

Earnings and Valuation

This table compares UBS Group and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
UBS Group	$76.12 billion	$7.77 billion	16.71
UBS Group Competitors	$5.22 billion	$399.10 million	17.71

UBS Group has higher revenue and earnings than its peers. UBS Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for UBS Group and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UBS Group	2	4	6	0	2.33
UBS Group Competitors	5550	20122	22457	642	2.37

UBS Group currently has a consensus target price of $60.30, suggesting a potential upside of 19.11%. As a group, “Capital Markets” companies have a potential upside of 21.94%. Given UBS Group’s peers stronger consensus rating and higher possible upside, analysts plainly believe UBS Group has less favorable growth aspects than its peers.

Summary

UBS Group peers beat UBS Group on 10 of the 15 factors compared.

UBS Group Company Profile

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. It also provides personal banking products and services, such as deposits, credit and debit cards, and online and mobile banking, as well as lending, investments, retirement, and wealth management services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, and transaction banking solutions for payment and cash management services, trade and export finance, and global custody solutions. In addition, the company offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. Further, it advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; distributes, trades in, finances, and clears cash equities and equity-linked products; structures, originates, and distributes new equity and equity-linked issues; and originates, distributes, manages risk, and provides liquidity in foreign exchange, rates, credit and precious metals. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.