Interactive Brokers Group (NASDAQ:IBKR) and Gamco Investors (NYSE:GBL) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.
Risk & Volatility
Interactive Brokers Group has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Gamco Investors has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.
This table compares Interactive Brokers Group and Gamco Investors’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Interactive Brokers Group||$2.58 billion||8.88||$161.00 million||$2.27||24.29|
|Gamco Investors||$312.37 million||1.56||$81.92 million||N/A||N/A|
Interactive Brokers Group has higher revenue and earnings than Gamco Investors.
Interactive Brokers Group pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. Gamco Investors pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. Interactive Brokers Group pays out 17.6% of its earnings in the form of a dividend.
This is a summary of recent ratings and price targets for Interactive Brokers Group and Gamco Investors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Interactive Brokers Group||1||0||1||0||2.00|
Interactive Brokers Group currently has a consensus price target of $50.00, indicating a potential downside of 9.32%. Given Interactive Brokers Group’s higher probable upside, research analysts clearly believe Interactive Brokers Group is more favorable than Gamco Investors.
This table compares Interactive Brokers Group and Gamco Investors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Interactive Brokers Group||6.24%||2.12%||0.24%|
Institutional and Insider Ownership
16.2% of Interactive Brokers Group shares are held by institutional investors. Comparatively, 23.5% of Gamco Investors shares are held by institutional investors. 3.2% of Interactive Brokers Group shares are held by insiders. Comparatively, 76.9% of Gamco Investors shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
About Interactive Brokers Group
Interactive Brokers Group, Inc. operates as an automated electronic broker in approximately 120 electronic exchanges and market centers worldwide. It specializes in executing and clearing trades in securities, futures, foreign exchange instruments, bonds, and mutual funds. The company custodies and services accounts for hedge and mutual funds, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. It offers custody, prime brokerage, securities, and margin lending services. The company provides electronic execution and clearing services. Interactive Brokers Group, Inc. was founded in 1977 and is headquartered in Greenwich, Connecticut.
About Gamco Investors
GAMCO Investors, Inc. is a publicly owned holding investment manager. The firm also provides wealth management, investment advisory, institutional research, brokerage, dealer, underwriting, and distribution services to its clients. It provides its services to individuals including high net worth individuals, corporate pension and profit-sharing plans, foundations, endowments, jointly trust plans, municipalities, and investment companies. The firm, through its subsidiaries, manages separate client-focused equity, fixed income, and balanced portfolios. It also launches equity, fixed income, and balanced mutual funds and manages equity mutual funds for its clients. Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. It invests in value stocks of companies. The firm employs fundamental analysis with a focus on bottom-up stock picking approach to create its portfolios. It conducts in-house research to make its investments. The firm was founded in 1976 and is based in Rye, New York with additional offices in Greenwich, Connecticut; Bannockburn, Illinois; and Tokyo, Japan. GAMCO Investors, Inc. operates as a subsidiary of GGCP, Inc.
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