Comparing Yintech Investment Holdings Limited (YIN) & Interactive Brokers Group (IBKR)
Yintech Investment Holdings Limited (NASDAQ: YIN) and Interactive Brokers Group (NASDAQ:IBKR) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.
Valuation and Earnings
This table compares Yintech Investment Holdings Limited and Interactive Brokers Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Yintech Investment Holdings Limited||$506.89 million||1.57||$150.76 million||$2.15||5.27|
|Interactive Brokers Group||$1.36 billion||2.50||$73.61 million||$1.03||46.28|
Yintech Investment Holdings Limited has higher revenue, but lower earnings than Interactive Brokers Group. Yintech Investment Holdings Limited is trading at a lower price-to-earnings ratio than Interactive Brokers Group, indicating that it is currently the more affordable of the two stocks.
Yintech Investment Holdings Limited pays an annual dividend of $0.80 per share and has a dividend yield of 7.1%. Interactive Brokers Group pays an annual dividend of $0.40 per share and has a dividend yield of 0.8%. Yintech Investment Holdings Limited pays out 37.2% of its earnings in the form of a dividend. Interactive Brokers Group pays out 38.8% 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. Yintech Investment Holdings Limited is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Yintech Investment Holdings Limited and Interactive Brokers Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Yintech Investment Holdings Limited||30.09%||33.52%||28.50%|
|Interactive Brokers Group||4.97%||1.19%||0.13%|
Institutional & Insider Ownership
1.6% of Yintech Investment Holdings Limited shares are held by institutional investors. Comparatively, 15.0% of Interactive Brokers Group shares are held by institutional investors. 3.4% of Interactive Brokers Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Yintech Investment Holdings Limited has a beta of -0.74, suggesting that its share price is 174% less volatile than the S&P 500. Comparatively, Interactive Brokers Group has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Yintech Investment Holdings Limited and Interactive Brokers Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Yintech Investment Holdings Limited||0||0||1||0||3.00|
|Interactive Brokers Group||1||4||0||0||1.80|
Yintech Investment Holdings Limited presently has a consensus target price of $15.00, indicating a potential upside of 32.39%. Interactive Brokers Group has a consensus target price of $39.00, indicating a potential downside of 18.19%. Given Yintech Investment Holdings Limited’s stronger consensus rating and higher possible upside, analysts plainly believe Yintech Investment Holdings Limited is more favorable than Interactive Brokers Group.
Yintech Investment Holdings Limited beats Interactive Brokers Group on 10 of the 16 factors compared between the two stocks.
Yintech Investment Holdings Limited Company Profile
Yintech Investment Holdings Limited is an online provider of spot commodity trading services in China. The Company facilitates the trading by individual customers of silver, gold, and other precious metals and commodities on the Shanghai Gold Exchange, the Tianjin Precious Metals Exchange and the Guangdong Precious Metals Exchange. The Company provides its customers with various services, such as account opening, investor education, market information, research, live discussion boards and real-time customer support. On the Tianjin Precious Metals Exchange and the Guangdong Precious Metals Exchange, the Company serves as counterparty to its customers’ trades. On the Shanghai Gold Exchange, the Company serves as an agent and does not hold principal positions. The Company’s services include investor education, market information provision and research. Its research services include research reports, online lectures, live market commentaries and quantitative analysis.
Interactive Brokers Group Company Profile
Interactive Brokers Group, Inc. (IBG, Inc.) is a holding company. The Company is an automated global electronic broker and market maker specializing in routing orders, and executing and processing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on over 120 electronic exchanges and market centers around the world and offering custody, prime brokerage, securities and margin lending services to customers. It operates in two segments: electronic brokerage and market making. It conducts its electronic brokerage business through its Interactive Brokers (IB) subsidiaries. It conducts its market making business through its Timber Hill (TH) subsidiaries. In the United States, it conducts its business from Greenwich, Connecticut and Chicago, Illinois. Outside the United States, it conducts business in Canada, England, Switzerland, Liechtenstein, China (Hong Kong and Shanghai), India, Australia and Japan.
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