Jefferies Financial Group (NYSE:JEF) and China Finance Online (NASDAQ:JRJC) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
76.0% of Jefferies Financial Group shares are held by institutional investors. 10.0% of Jefferies Financial Group shares are held by insiders. Comparatively, 30.4% of China Finance Online shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Jefferies Financial Group pays an annual dividend of $0.50 per share and has a dividend yield of 2.3%. China Finance Online does not pay a dividend. Jefferies Financial Group pays out 61.7% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Jefferies Financial Group and China Finance Online’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Jefferies Financial Group||$5.01 billion||1.28||$1.03 billion||$0.81||26.38|
|China Finance Online||$45.48 million||N/A||-$19.95 million||N/A||N/A|
Jefferies Financial Group has higher revenue and earnings than China Finance Online.
Risk and Volatility
Jefferies Financial Group has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, China Finance Online has a beta of 2.38, meaning that its stock price is 138% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Jefferies Financial Group and China Finance Online, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jefferies Financial Group||0||1||0||0||2.00|
|China Finance Online||0||0||0||0||N/A|
Jefferies Financial Group currently has a consensus target price of $26.50, suggesting a potential upside of 24.01%. Given Jefferies Financial Group’s higher possible upside, equities analysts clearly believe Jefferies Financial Group is more favorable than China Finance Online.
This table compares Jefferies Financial Group and China Finance Online’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jefferies Financial Group||N/A||N/A||N/A|
|China Finance Online||-41.79%||-59.93%||-21.08%|
Jefferies Financial Group beats China Finance Online on 8 of the 11 factors compared between the two stocks.
Jefferies Financial Group Company Profile
Jefferies Financial Group Inc., a financial services company, engages in investment banking and capital markets, asset management, and direct investing businesses in the Americas, Europe, and Asia. the company also offers equities research, sales, and trading services; equity finance services comprising financing, securities lending, and other prime brokerage services; and wealth management services to high net worth individuals, their families and businesses, private equity and venture funds, and small institutions. In addition, it provides fixed income sales and trading services for investment grade corporate bonds, U.S. and European government and agency securities, municipal bonds, mortgage- and asset-backed securities, leveraged loans, consumer loans, securities, markets debt, interest rate, and credit derivative products, as well as foreign exchange trade execution and securitization capabilities, as well as manages, invests in, and provides services to a group of alternative asset management platforms in investment strategies and asset classes. The company was formerly known as Leucadia National Corporation and changed its name to Jefferies Financial Group Inc. in May 2018. Jefferies Financial Group Inc. was founded in 1968 and is headquartered in New York, New York.
China Finance Online Company Profile
China Finance Online Co. Limited provides Web-based financial services in the People's Republic of China and Hong Kong. The company operates through three segments: Commodities Brokerage Services; Online Financial Information and Advisory Service, and Other Related Services; and Hong Kong Brokerage Services. It provides online access to securities and commodities trading services, wealth management products, and securities investment advisory services to retail investors; and financial database and analytics to institutional investors, including financial, research, academic, and regulatory institutions, as well as financial software products. The company is involved in the operation of Yinglibao, an Internet-based financial platform that integrates wealth management solutions and mutual fund distribution; JRJ mobile app for financial information, securities trading, investment advisory, and wealth management; jrj.com.cn to provide access for wealth management solutions and mutual fund distribution; and jrj.com, a financial information Website. In addition, it provides commodities brokerage services; securities and futures contracts brokerage and related services to its customers, who invest in stocks listed on Hong Kong Stock Exchanges and Clearing Limited; information services; and insurance brokerage services. The company offers its products and services to individual investors managing their own money; professional investors, such as institutional investors managing large sums of money on behalf of their clients and high net worth individuals; and other financial professionals, including investment bankers, stock analysts and financial reporters, and middle class individuals. China Finance Online Co. Limited has a strategic partnership agreement with CIFCO Futures Co., Ltd. The company was incorporated in 1998 and is based in Beijing, the People's Republic of China.
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