Head-To-Head Contrast: Oppenheimer (OPY) versus Cowen (COWN)

Oppenheimer (NYSE:OPY) and Cowen (NASDAQ:COWN) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Earnings and Valuation

This table compares Oppenheimer and Cowen’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oppenheimer $958.15 million 0.35 $28.89 million N/A N/A
Cowen $966.92 million 0.49 $42.82 million N/A N/A

Cowen has higher revenue and earnings than Oppenheimer.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Oppenheimer and Cowen, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oppenheimer 0 0 0 0 N/A
Cowen 0 0 1 0 3.00

Cowen has a consensus target price of $19.00, suggesting a potential upside of 18.01%. Given Cowen’s higher probable upside, analysts plainly believe Cowen is more favorable than Oppenheimer.

Profitability

This table compares Oppenheimer and Cowen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oppenheimer 3.02% 7.06% 1.58%
Cowen 4.55% 10.00% 2.34%

Institutional & Insider Ownership

47.0% of Oppenheimer shares are held by institutional investors. Comparatively, 90.7% of Cowen shares are held by institutional investors. 25.7% of Oppenheimer shares are held by insiders. Comparatively, 5.7% of Cowen shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Oppenheimer has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Cowen has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Dividends

Oppenheimer pays an annual dividend of $0.44 per share and has a dividend yield of 1.7%. Cowen does not pay a dividend.

Summary

Cowen beats Oppenheimer on 10 of the 13 factors compared between the two stocks.

About Oppenheimer

Oppenheimer Holdings Inc., through its subsidiaries, provides middle-market investment bank and full service broker-dealer products and services. The company offers full-service brokerage services covering exchange-traded and over-the-counter corporate equity and debt securities, money market instruments, exchange-traded options and futures contracts, municipal bonds, mutual funds, and unit investment trusts; financial and wealth planning services; and margin lending services. It also provides asset management services, including separately managed accounts, mutual fund managed accounts, discretionary portfolio management programs, fee-based non-discretionary investment advisory services, alternative investments, portfolio enhancement programs, investment advisory services, and institutional taxable fixed income portfolio management services, as well as taxable and non-taxable fixed income portfolios and strategies. In addition, the company offers investment banking services, such as strategic advisory services and capital markets products; merger and acquisition, equities capital market, and debt capital market products and services; and institutional equity sales and trading, equity research, equity derivatives and index options, convertible bonds, and event driven sales and trading services. Further, it provides institutional fixed income sales and trading, fixed income research, public finance, and municipal trading services; repurchase agreements and securities lending services; and proprietary trading and investment activities. Additionally, the company offers underwritings, market-making, trust, and discount services. It serves high-net-worth individuals and families, corporate executives, public and private businesses, institutions and investment advisers, financial sponsors, and domestic and international investors in the Americas, Europe, the Middle East, and Asia. The company was founded in 1881 and is headquartered in New York, New York.

About Cowen

Cowen Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides alternative investment management, investment banking, research, and sales and trading services for its clients. It manages separate client focused portfolio through its subsidiaries. Through its subsidiaries, the firm invests in equity and fixed income markets. It also invests in alternative investments markets through its subsidiaries. Cowen Group, Inc. was founded in 1994 and is headquartered in New York, New York with additional offices in Boston, Massachusetts, Chicago, Illinois, Cleveland, Ohio, Dallas, Texas, and San Francisco, California.

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