Comparing StoneX Group (NASDAQ:SNEX) & Victory Capital (NASDAQ:VCTR)

StoneX Group (NASDAQ:SNEX) and Victory Capital (NASDAQ:VCTR) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Risk & Volatility

StoneX Group has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Victory Capital has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
StoneX Group	0.33%	20.18%	1.05%
Victory Capital	29.57%	24.17%	13.77%

Earnings and Valuation

This table compares StoneX Group and Victory Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StoneX Group	$132.38 billion	0.06	$305.90 million	$4.19	16.58
Victory Capital	$1.31 billion	5.36	$330.06 million	$5.44	20.91

Victory Capital has lower revenue, but higher earnings than StoneX Group. StoneX 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.

Insider and Institutional Ownership

75.9% of StoneX Group shares are held by institutional investors. Comparatively, 87.7% of Victory Capital shares are held by institutional investors. 11.8% of StoneX Group shares are held by insiders. Comparatively, 9.5% of Victory Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for StoneX Group and Victory Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StoneX Group	0	2	1	1	2.75
Victory Capital	0	4	3	1	2.62

StoneX Group currently has a consensus target price of $112.00, indicating a potential upside of 61.24%. Victory Capital has a consensus target price of $105.71, indicating a potential downside of 7.05%. Given StoneX Group’s stronger consensus rating and higher possible upside, analysts clearly believe StoneX Group is more favorable than Victory Capital.

Summary

Victory Capital beats StoneX Group on 10 of the 14 factors compared between the two stocks.

About StoneX Group

StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. The company operates through Commercial, Institutional, Retail, and Global Payments segments. The Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The Institutional segment offers equity trading services to institutional clients; clearing and execution services in futures exchanges; brokerage foreign exchange services for the financial institutions and professional traders; and OTC products, as well as originates, structures, and places debt instruments in capital markets. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies, as well as engages in asset management business. The Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management services, as well as offers physical gold and other precious metals in various forms and denominations through Stonexbullion.com. The Global Payments segment provides customized payment, technology, and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and pricing and payments services. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.

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.