Investment Technology Group (NYSE: ITG) is one of 19 publicly-traded companies in the “Investment Banking” industry, but how does it contrast to its peers? We will compare Investment Technology Group to related companies based on the strength of its profitability, earnings, analyst recommendations, valuation, risk, institutional ownership and dividends.

Institutional and Insider Ownership

84.6% of Investment Technology Group shares are owned by institutional investors. Comparatively, 60.6% of shares of all “Investment Banking” companies are owned by institutional investors. 2.4% of Investment Technology Group shares are owned by insiders. Comparatively, 17.8% of shares of all “Investment Banking” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Investment Technology Group pays an annual dividend of $0.28 per share and has a dividend yield of 1.5%. Investment Technology Group pays out -29.5% of its earnings in the form of a dividend. As a group, “Investment Banking” companies pay a dividend yield of 2.5% and pay out -126.9% of their earnings in the form of a dividend. Investment Technology Group lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

Investment Technology Group has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Investment Technology Group’s peers have a beta of 1.22, indicating that their average stock price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Investment Technology Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Investment Technology Group 0 1 1 0 2.50
Investment Technology Group Competitors 69 368 327 25 2.39

Investment Technology Group currently has a consensus target price of $20.50, indicating a potential upside of 9.22%. As a group, “Investment Banking” companies have a potential downside of 12.87%. Given Investment Technology Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Investment Technology Group is more favorable than its peers.

Profitability

This table compares Investment Technology Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Investment Technology Group -6.57% 2.92% 1.37%
Investment Technology Group Competitors 1.63% 5.90% 4.28%

Valuation and Earnings

This table compares Investment Technology Group and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Investment Technology Group $469.05 million -$25.91 million -19.76
Investment Technology Group Competitors $891.57 million $116.54 million 230.73

Investment Technology Group’s peers have higher revenue and earnings than Investment Technology Group. Investment Technology Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Investment Technology Group peers beat Investment Technology Group on 10 of the 15 factors compared.

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.

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