Reviewing Emergent Capital (OTCMKTS:EMGCQ) & Virtu Financial (NASDAQ:VIRT)

Virtu Financial (NASDAQ:VIRT) and Emergent Capital (OTCMKTS:EMGCQ) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Virtu Financial and Emergent Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virtu Financial	$3.63 billion	1.75	$276.42 million	$5.13	8.08
Emergent Capital	N/A	N/A	N/A	N/A	N/A

Virtu Financial has higher revenue and earnings than Emergent Capital.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Virtu Financial and Emergent Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virtu Financial	1	4	2	0	2.14
Emergent Capital	0	0	0	0	0.00

Virtu Financial presently has a consensus price target of $43.00, indicating a potential upside of 3.71%. Given Virtu Financial’s stronger consensus rating and higher possible upside, research analysts plainly believe Virtu Financial is more favorable than Emergent Capital.

Profitability

This table compares Virtu Financial and Emergent Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virtu Financial	10.43%	32.08%	3.09%
Emergent Capital	N/A	N/A	N/A

Institutional & Insider Ownership

45.8% of Virtu Financial shares are owned by institutional investors. 47.2% of Virtu Financial shares are owned by insiders. Comparatively, 48.9% of Emergent Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Virtu Financial beats Emergent Capital on 8 of the 9 factors compared between the two stocks.

About Virtu Financial

Virtu Financial, Inc. operates as a financial services company in the United States, Asia Pacific, Canada, EMEA, Ireland, and internationally. The company operates through two segments, Market Making and Execution Services. Its product includes offerings in execution, liquidity sourcing, analytics and broker-neutral, capital markets, and multi-dealer platforms in workflow technology. The company's product allow its clients to trade on various venues across 50 countries and in various asset classes, including global equities, ETFs, options, foreign exchange, futures, fixed income, cryptocurrencies, and myriad other commodities. Its multi-asset analytics platform provides a range of pre- and post-trade services, data products, and compliance tools for clients to invest, trade, and manage risk across global markets. The company was founded in 2008 and is headquartered in New York, New York.

About Emergent Capital

Emergent Capital, Inc., a specialty finance company, invests in life settlements. As of August 31, 2020, it owned a portfolio of 500 life insurance policies. The company was formerly known as Imperial Holdings, Inc. and changed its name to Emergent Capital, Inc. in September 2015. The company was founded in 2006 and is based in Boca Raton, Florida. On October 15, 2020, Emergent Capital, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.