Siebert Financial (NASDAQ:SIEB) and Waddell & Reed Financial (NYSE:WDR) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Waddell & Reed Financial pays an annual dividend of $1.00 per share and has a dividend yield of 5.9%. Siebert Financial does not pay a dividend. Waddell & Reed Financial pays out 43.9% of its earnings in the form of a dividend.
This table compares Siebert Financial and Waddell & Reed Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Waddell & Reed Financial||15.09%||19.31%||13.23%|
Valuation and Earnings
This table compares Siebert Financial and Waddell & Reed Financial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Siebert Financial||$30.04 million||8.13||$11.96 million||N/A||N/A|
|Waddell & Reed Financial||$1.16 billion||1.10||$183.59 million||$2.28||7.44|
Waddell & Reed Financial has higher revenue and earnings than Siebert Financial.
This is a breakdown of recent ratings and target prices for Siebert Financial and Waddell & Reed Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Waddell & Reed Financial||4||2||1||0||1.57|
Waddell & Reed Financial has a consensus target price of $18.43, indicating a potential upside of 8.61%. Given Waddell & Reed Financial’s higher possible upside, analysts clearly believe Waddell & Reed Financial is more favorable than Siebert Financial.
Volatility and Risk
Siebert Financial has a beta of -0.18, meaning that its stock price is 118% less volatile than the S&P 500. Comparatively, Waddell & Reed Financial has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.
Institutional and Insider Ownership
4.1% of Siebert Financial shares are owned by institutional investors. Comparatively, 98.2% of Waddell & Reed Financial shares are owned by institutional investors. 67.9% of Siebert Financial shares are owned by company insiders. Comparatively, 2.1% of Waddell & Reed Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Siebert Financial Company Profile
Siebert Financial Corp., through its subsidiaries, engages in the retail discount brokerage and investment advisory businesses. The company offers online and traditional brokerage, and related services to retail investors through a broker on the telephone, a wireless device, or through the Internet; various value added services, such as access to account information; independent retail execution services; and retail customer services. It also self-directed retirement accounts; and custodial services, as well as lends customers a portion of the market value of certain securities held in the customer's account. In addition, the company provides data technology platform that offers services, such as email and messaging, market data systems and third party trading systems, business productivity tools, and customer relationship management systems. Further, it offers a Robo-Advisor that provides clients with an automated wealth management solution; and various insurance products, such as fixed annuities and property and casualty insurance. Siebert Financial Corp. maintains 12 retail discount brokerage offices. The company was founded in 1886 and is headquartered in New York, New York.
Waddell & Reed Financial Company Profile
Waddell & Reed Financial, Inc., through its subsidiaries, provides investment management and advisory, investment product underwriting and distribution, and shareholder services administration to mutual funds, and institutional and separately managed accounts in the United States. The company acts as an investment adviser for institutional and other private investors, and provides sub advisory services to other investment companies; and underwrites and distributes registered open-end mutual fund portfolios. It also offers fee-based asset allocation investment advisory products to advisors channel customers; distributes business partners' variable annuity products, and retirement and life insurance products to advisors channel customers; and sells life insurance and disability products underwritten by various carriers. The company distributes investment products through its wholesale channel comprising other broker/dealers, various retirement platforms, and registered investment advisors, as well as through independent financial advisors; and markets investment advisory services to institutional investors directly or through consultants. Waddell & Reed Financial, Inc. was founded in 1937 and is based in Overland Park, Kansas.
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