Head-To-Head Analysis: Nomura (NYSE:NMR) and FXCM (OTCMKTS:GLBR)

Nomura (NYSE:NMR) and FXCM (OTCMKTS:GLBR) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Nomura and FXCM, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nomura	0	2	0	0	2.00
FXCM	0	0	0	0	0.00

Given FXCM’s higher possible upside, analysts plainly believe FXCM is more favorable than Nomura.

Insider and Institutional Ownership

15.1% of Nomura shares are owned by institutional investors. 0.0% of Nomura shares are owned by company insiders. Comparatively, 9.0% of FXCM shares are owned by company 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.

Earnings & Valuation

This table compares Nomura and FXCM”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nomura	$31.11 billion	0.69	$2.25 billion	$0.83	8.79
FXCM	N/A	N/A	N/A	N/A	N/A

Nomura has higher revenue and earnings than FXCM.

Profitability

This table compares Nomura and FXCM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nomura	8.06%	10.58%	0.65%
FXCM	N/A	N/A	N/A

Volatility & Risk

Nomura has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, FXCM has a beta of -2.19, indicating that its share price is 319% less volatile than the S&P 500.

Summary

Nomura beats FXCM on 7 of the 9 factors compared between the two stocks.

About Nomura

Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. It operates through three segments: Retail, Investment Management, and Wholesale. The Retail segment offers various financial products and investment consultation services. The Investment Management segment engages in the management of funds, investment trusts, and other investment solutions; and provision of investment advisory, custodial, and administrative services. The Wholesale segment is involved in the research, sale, trading, agency execution, and market-making of fixed income and equity-related products. This segment also engages in underwriting various securities and other financial instruments, such as various classes of shares, convertible and exchangeable securities, investment grade and high yield debts, sovereign and emerging market debts, structured securities, and other securities; arranging private placements, as well as other capital raising activities; and the provision of financial advisory services on business transactions comprising mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions. The company was formerly known as The Nomura Securities Co., Ltd. and changed its name to Nomura Holdings, Inc. in October 2001. Nomura Holdings, Inc. was incorporated in 1925 and is headquartered in Tokyo, Japan.

About FXCM

Global Brokerage, Inc., through its subsidiaries, provides online foreign exchange (FX) trading, contracts for difference trading, spread betting, and related services to retail and institutional customers worldwide. Its proprietary trading platform presents its FX customers with the price quotations on various currency pairs from a range of global banks, financial institutions, and market makers. The company also acts as a credit intermediary and simultaneously entering into trades with the customer and the FX market maker. It offers its customers access to over-the-counter FX markets. The company was formerly known as FXCM Inc. and changed its name to Global Brokerage, Inc. in February 2017. Global Brokerage, Inc. was incorporated in 2010 and is based in New York, New York. On March 23, 2023, an involuntary petition for liquidation under Chapter 7 was filed against Global Brokerage, Inc. in the U.S. Bankruptcy Court for the Southern District of New York. On May 19, 2023, the involuntary petition was approved by the Court.