Head-To-Head Review: Raymond James Financial (RJF) vs. Its Rivals

Raymond James Financial (NYSE:RJF) is one of 1,743 public companies in the “Capital Markets” industry, but how does it contrast to its competitors? We will compare Raymond James Financial to similar companies based on the strength of its valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Dividends

Raymond James Financial pays an annual dividend of $2.16 per share and has a dividend yield of 1.3%. Raymond James Financial pays out 18.1% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.2% of their earnings in the form of a dividend. Raymond James Financial has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Raymond James Financial and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raymond James Financial	0	9	6	0	2.40
Raymond James Financial Competitors	5566	20161	22510	642	2.37

Raymond James Financial currently has a consensus target price of $181.46, indicating a potential upside of 7.24%. As a group, “Capital Markets” companies have a potential upside of 24.69%. Given Raymond James Financial’s competitors higher possible upside, analysts plainly believe Raymond James Financial has less favorable growth aspects than its competitors.

Profitability

This table compares Raymond James Financial and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Raymond James Financial	13.50%	19.52%	2.69%
Raymond James Financial Competitors	318.48%	79.19%	3.72%

Earnings & Valuation

This table compares Raymond James Financial and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Raymond James Financial	$17.54 billion	$2.37 billion	14.20
Raymond James Financial Competitors	$2.39 billion	$398.52 million	17.33

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

Volatility & Risk

Raymond James Financial has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Raymond James Financial’s competitors have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

Institutional & Insider Ownership

83.8% of Raymond James Financial shares are held by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are held by institutional investors. 0.6% of Raymond James Financial shares are held by company insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Raymond James Financial competitors beat Raymond James Financial on 9 of the 15 factors compared.

About Raymond James Financial

Raymond James Financial, Inc. is a diversified financial services company that provides wealth management, investment banking, asset management and banking services. Through its financial advisors and related businesses, it serves individuals, families, businesses and institutions. The company offers financial planning, investment advisory and brokerage services, along with corporate finance, equity and fixed-income capital markets services. Its asset management business provides investment strategies and portfolio solutions, while Raymond James Bank offers banking and lending services.