Diamond Hill Investment Group (NASDAQ:DHIL – Get Free Report) and Interactive Brokers Group (NASDAQ:IBKR – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.
Dividends
Diamond Hill Investment Group pays an annual dividend of $6.00 per share and has a dividend yield of 3.5%. Interactive Brokers Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.4%. Diamond Hill Investment Group pays out 34.8% of its earnings in the form of a dividend. Interactive Brokers Group pays out 14.5% 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. Interactive Brokers Group has increased its dividend for 2 consecutive years.
Valuation and Earnings
This table compares Diamond Hill Investment Group and Interactive Brokers Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Diamond Hill Investment Group | $151.10 million | 3.06 | $43.18 million | $17.22 | 9.92 |
| Interactive Brokers Group | $10.42 billion | 12.16 | $984.00 million | $2.21 | 33.82 |
Interactive Brokers Group has higher revenue and earnings than Diamond Hill Investment Group. Diamond Hill Investment Group 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.
Volatility & Risk
Diamond Hill Investment Group has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Interactive Brokers Group has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Diamond Hill Investment Group and Interactive Brokers Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Diamond Hill Investment Group | 0 | 1 | 0 | 0 | 2.00 |
| Interactive Brokers Group | 0 | 1 | 7 | 1 | 3.00 |
Interactive Brokers Group has a consensus target price of $76.39, suggesting a potential upside of 2.20%. Given Interactive Brokers Group’s stronger consensus rating and higher possible upside, analysts plainly believe Interactive Brokers Group is more favorable than Diamond Hill Investment Group.
Profitability
This table compares Diamond Hill Investment Group and Interactive Brokers Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Diamond Hill Investment Group | 31.32% | 20.71% | 14.34% |
| Interactive Brokers Group | 9.44% | 5.12% | 0.52% |
Insider & Institutional Ownership
65.5% of Diamond Hill Investment Group shares are owned by institutional investors. Comparatively, 23.8% of Interactive Brokers Group shares are owned by institutional investors. 4.6% of Diamond Hill Investment Group shares are owned by insiders. Comparatively, 3.0% of Interactive Brokers Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Interactive Brokers Group beats Diamond Hill Investment Group on 11 of the 18 factors compared between the two stocks.
About Diamond Hill Investment Group
Diamond Hill Investment Group, Inc., through its subsidiary, Diamond Hill Capital Management, Inc., provides investment advisory and fund administration services in the United States. It offers investment advisory and related services to clients through pooled vehicles, such as private fund; separately managed accounts; collective investment trusts; and other pooled vehicles, including sub-advised funds and model delivery programs. The company also provides fund administration services comprising portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the funds, as well as oversight of back-office service providers, which include the custodian, fund accountant, and transfer agent. Diamond Hill Investment Group, Inc. was incorporated in 1990 and is based in Columbus, Ohio.
About Interactive Brokers Group
Interactive Brokers Group, Inc. operates as an automated electronic broker worldwide. The company engages in the execution, clearance, and settlement of trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange traded funds (ETFs), precious metals, and cryptocurrencies. It also custodies and services accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. In addition, the company offers custody, prime brokerage, securities, and margin lending services. It serves institutional and individual customers through electronic exchanges and market centers. The company was founded in 1977 and is headquartered in Greenwich, Connecticut.
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