Jacobs Solutions (NYSE:J) vs. Futu (NASDAQ:FUTU) Head-To-Head Review

Jacobs Solutions (NYSE:J) and Futu (NASDAQ:FUTU) are both large-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares Jacobs Solutions and Futu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jacobs Solutions	2.92%	22.29%	6.85%
Futu	49.63%	32.24%	5.33%

Earnings & Valuation

This table compares Jacobs Solutions and Futu”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jacobs Solutions	$12.03 billion	1.08	$289.34 million	$3.22	34.30
Futu	$2.94 billion	6.43	$1.46 billion	$10.28	13.10

Futu has lower revenue, but higher earnings than Jacobs Solutions. Futu is trading at a lower price-to-earnings ratio than Jacobs Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Jacobs Solutions and Futu, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jacobs Solutions	0	6	6	0	2.50
Futu	0	3	5	1	2.78

Jacobs Solutions currently has a consensus target price of $153.40, indicating a potential upside of 38.87%. Futu has a consensus target price of $209.17, indicating a potential upside of 55.35%. Given Futu’s stronger consensus rating and higher possible upside, analysts plainly believe Futu is more favorable than Jacobs Solutions.

Institutional and Insider Ownership

85.7% of Jacobs Solutions shares are owned by institutional investors. 0.5% of Jacobs Solutions shares are owned by insiders. Comparatively, 35.2% of Futu shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Jacobs Solutions has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Futu has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Dividends

Jacobs Solutions pays an annual dividend of $1.44 per share and has a dividend yield of 1.3%. Futu pays an annual dividend of $2.55 per share and has a dividend yield of 1.9%. Jacobs Solutions pays out 44.7% of its earnings in the form of a dividend. Futu pays out 24.8% 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. Jacobs Solutions has increased its dividend for 4 consecutive years. Futu is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Futu beats Jacobs Solutions on 11 of the 18 factors compared between the two stocks.

About Jacobs Solutions

Jacobs Solutions Inc. provides consulting, technical, engineering, scientific, and project delivery services for the government and private sectors in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. It operates through Critical Mission Solutions, People & Places Solutions, Divergent Solutions, and PA Consulting segments. The company offers cyber, data analytics, systems and software application integration and consulting, enterprise level and mission IT, design, nuclear, and enterprise level operations and maintenance services; software development, testing, mission integration, program management, research, development, test, evaluation services, training, and environmental remediation services; and other technical consulting solutions, as well as construction and construction management services. It also provides consulting services for consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport industries. The company was founded in 1947 and is headquartered in Dallas, Texas.

About Futu

Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin financing and fund distribution services through its Futubull and Moomoo digital platforms. The company also provides financial information and online community services; online wealth management services under the Money Plus brand name through its Futubull and moomoo platforms, which provides its client access to mutual funds, private funds, bonds, structured products, and other wealth management products; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas. Futu Holdings Limited was founded in 2007 and is headquartered in Sheung Wan, Hong Kong.