Gleacher & Company Inc (GLCH) and JMP Group (JMP) Financial Analysis

Gleacher & Company Inc (OTCMKTS: GLCH) and JMP Group (NYSE:JMP) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Profitability

This table compares Gleacher & Company Inc and JMP Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gleacher & Company Inc N/A N/A N/A
JMP Group -10.16% 4.26% 0.45%

Volatility & Risk

Gleacher & Company Inc has a beta of -0.07, meaning that its stock price is 107% less volatile than the S&P 500. Comparatively, JMP Group has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Dividends

JMP Group pays an annual dividend of $0.36 per share and has a dividend yield of 6.6%. Gleacher & Company Inc does not pay a dividend. JMP Group pays out 180.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current ratings and target prices for Gleacher & Company Inc and JMP Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gleacher & Company Inc 0 0 0 0 N/A
JMP Group 0 1 1 0 2.50

JMP Group has a consensus price target of $6.75, indicating a potential upside of 24.08%. Given JMP Group’s higher probable upside, analysts clearly believe JMP Group is more favorable than Gleacher & Company Inc.

Valuation & Earnings

This table compares Gleacher & Company Inc and JMP Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gleacher & Company Inc N/A N/A N/A N/A N/A
JMP Group $109.87 million 1.07 -$15.88 million $0.20 27.20

Gleacher & Company Inc has higher earnings, but lower revenue than JMP Group.

Institutional and Insider Ownership

12.9% of JMP Group shares are owned by institutional investors. 29.6% of Gleacher & Company Inc shares are owned by insiders. Comparatively, 52.8% of JMP Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

JMP Group beats Gleacher & Company Inc on 9 of the 11 factors compared between the two stocks.

Gleacher & Company Inc Company Profile

Gleacher & Company, Inc. went out of business. The firm provides strategic and financial advisory services to corporate and institutional clients. It operates through Investment Banking, MBS & Rates, and Credit Products segments. It also invests and manages a fund that holds investments in privately held companies; and offers residential mortgage lending. Gleacher & Company, Inc. was founded in 1952 and is headquartered in Albany, New York.

JMP Group Company Profile

JMP Group LLC, together with its subsidiaries, provides investment banking, sales and trading, equity research, and asset management products and services in the United States. The company operates through three segments: Broker-Dealer, Asset Management, and Corporate. The Broker-Dealer segment offers various services, such as underwriting and acting as a placement agent for public and private capital markets raising transactions; and financial advisory services in mergers and acquisitions, restructuring, and other strategic transactions. This segment also provides institutional brokerage services and equity research services. The Asset Management segment is involved in the management of a range of pooled investment vehicles, including the hedge funds, hedge funds of funds, and collateralized loan obligations. The Corporate segment includes investments in public and private securities, and investment funds, as well as other investing activities. The company also provides investment advisory services to business development companies. In addition, it serves corporates, institutional clients and investors, and high net-worth individuals. JMP Group LLC is headquartered in San Francisco, California.

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