Nomura Holdings Inc ADR (NMR) and Raymond James Financial (RJF) Critical Analysis
Nomura Holdings Inc ADR (NYSE: NMR) and Raymond James Financial (NYSE:RJF) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Risk & Volatility
Nomura Holdings Inc ADR has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, Raymond James Financial has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500.
Insider & Institutional Ownership
0.6% of Nomura Holdings Inc ADR shares are held by institutional investors. Comparatively, 70.0% of Raymond James Financial shares are held by institutional investors. 11.2% of Raymond James Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Nomura Holdings Inc ADR and Raymond James Financial’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Nomura Holdings Inc ADR||$13.05 billion||1.55||$2.23 billion||$0.63||9.08|
|Raymond James Financial||$6.12 billion||1.93||$605.03 million||$4.21||19.55|
Nomura Holdings Inc ADR has higher revenue and earnings than Raymond James Financial. Nomura Holdings Inc ADR is trading at a lower price-to-earnings ratio than Raymond James Financial, indicating that it is currently the more affordable of the two stocks.
Nomura Holdings Inc ADR pays an annual dividend of $0.07 per share and has a dividend yield of 1.2%. Raymond James Financial pays an annual dividend of $0.88 per share and has a dividend yield of 1.1%. Nomura Holdings Inc ADR pays out 11.1% of its earnings in the form of a dividend. Raymond James Financial pays out 20.9% 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. Nomura Holdings Inc ADR has increased its dividend for 4 consecutive years. Nomura Holdings Inc ADR is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Nomura Holdings Inc ADR and Raymond James Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nomura Holdings Inc ADR||15.47%||8.69%||0.57%|
|Raymond James Financial||9.78%||13.37%||2.19%|
This is a breakdown of current recommendations and price targets for Nomura Holdings Inc ADR and Raymond James Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nomura Holdings Inc ADR||0||2||1||0||2.33|
|Raymond James Financial||0||2||4||0||2.67|
Raymond James Financial has a consensus price target of $89.80, suggesting a potential upside of 9.09%. Given Raymond James Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Raymond James Financial is more favorable than Nomura Holdings Inc ADR.
Raymond James Financial beats Nomura Holdings Inc ADR on 11 of the 17 factors compared between the two stocks.
About Nomura Holdings Inc ADR
Nomura Holdings, Inc. (Nomura) is a financial services company. The Company, through its broker-dealer, banking and other financial services subsidiaries, provide investment, financing and related services to individual, institutional and government clients across the world. The Company’s segments include Retail, Asset Management and Wholesale. Its clients include individuals, corporations, financial institutions, governments and governmental agencies. The Company’s Retail segment provides investment consultation services to individual clients in Japan. The Company’s Asset Management segment develops and manages investment trusts, and provides investment advisory services. The Company’s Wholesale segment is engaged in the sales and trading of debt and equity securities, derivatives, and currencies on a global basis, and provides investment banking services, such as the underwriting of debt and equity securities, as well as mergers and acquisitions and financial advice.
About Raymond James Financial
Raymond James Financial, Inc. (RJF) is a financial holding company. The Company’s subsidiaries include Raymond James & Associates, Inc. (RJ&A), Raymond James Financial Services, Inc. (RJFS), Raymond James Financial Services Advisors, Inc. (RJFSA), Raymond James Ltd. (RJ Ltd.), Eagle Asset Management, Inc. (Eagle), and Raymond James Bank, N.A. (RJ Bank). It operates through five segments: Private Client Group (PCG), Capital Markets, Asset Management, RJ Bank and the Other segment. The Private Client Group segment includes the retail branches of the Company’s broker-dealer subsidiaries located throughout the United States, Canada and the United Kingdom. The Capital Markets segment includes institutional sales and trading in the United States, Canada and Europe. The Asset Management segment includes the operations of Eagle, the Eagle Family of Funds and other fee-based asset management programs. RJ Bank segment provides corporate loan, securities based loans (SB) and residential loans.
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