Financial Analysis: Investment Technology Group (ITG) vs. Moelis & (MC)
Investment Technology Group (NYSE: ITG) and Moelis & (NYSE:MC) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.
This is a breakdown of recent ratings and target prices for Investment Technology Group and Moelis &, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Investment Technology Group||0||0||1||0||3.00|
Investment Technology Group presently has a consensus target price of $20.00, indicating a potential downside of 0.60%. Moelis & has a consensus target price of $37.57, indicating a potential downside of 3.17%. Given Investment Technology Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Investment Technology Group is more favorable than Moelis &.
This table compares Investment Technology Group and Moelis &’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Investment Technology Group||-1.77%||3.08%||1.42%|
Insider & Institutional Ownership
87.6% of Investment Technology Group shares are held by institutional investors. Comparatively, 90.8% of Moelis & shares are held by institutional investors. 2.4% of Investment Technology Group shares are held by insiders. Comparatively, 64.5% of Moelis & shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Investment Technology Group and Moelis &’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Investment Technology Group||$464.03 million||1.44||-$8.61 million||($0.26)||-77.38|
|Moelis &||$700.69 million||1.52||$55.04 million||$2.00||19.40|
Moelis & has higher revenue and earnings than Investment Technology Group. Investment Technology Group is trading at a lower price-to-earnings ratio than Moelis &, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Investment Technology Group has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Moelis & has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.
Investment Technology Group pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Moelis & pays an annual dividend of $1.48 per share and has a dividend yield of 3.8%. Investment Technology Group pays out -107.7% of its earnings in the form of a dividend. Moelis & pays out 74.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Investment Technology Group has raised its dividend for 2 consecutive years.
Moelis & beats Investment Technology Group on 12 of the 16 factors compared between the two stocks.
About Investment Technology Group
Investment Technology Group, Inc. (ITG) is a financial technology company that helps brokers and asset managers improve returns for investors around the world. The Company operates through four segments: U.S. Operations, Canadian Operations, European Operations and Asia Pacific Operations. These four segments provide categories of products and services, such as Execution Services, Workflow Technology and Analytics. Execution Services includes self-directed trading using algorithms, smart routing and matching through POSIT in cash equities, futures and options trading and portfolio trading and high-touch trading desks providing execution expertise. Workflow Technology includes trade order and execution management software applications in addition to network connectivity. Analytics includes tools enabling portfolio managers and traders to improve pre-trade, real-time and post-trade execution performance; portfolio construction and optimization decisions, and securities valuation.
About Moelis &
Moelis & Company is an investment banking advisory company. The Company provides strategic and financial advice to a client base, including corporations, governments and financial sponsors. The Company offers financial advisory services across various industry sectors. It advices its clients on decisions, including mergers and acquisitions (M&A), recapitalizations and restructurings, and other corporate finance matters. With 17 offices located in North and South America, Europe, the Middle East, Asia and Australia, the Company provided information flow and cross-border solutions as of December 31, 2016. The Company offers advisory services in all industries, including consumer, retail and restaurants; energy, power and infrastructure; financial institutions; financial sponsors; general industrials; healthcare; real estate, gaming, lodging and leisure, and technology, media and telecommunications. It advises clients on all aspects of public and private debt and equity transactions.
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