Head-To-Head Contrast: Nasdaq (NASDAQ:NDAQ) & Siebert Financial (NASDAQ:SIEB)

Siebert Financial (NASDAQ:SIEB) and Nasdaq (NASDAQ:NDAQ) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

1.5% of Siebert Financial shares are owned by institutional investors. Comparatively, 72.5% of Nasdaq shares are owned by institutional investors. 46.0% of Siebert Financial shares are owned by insiders. Comparatively, 0.6% of Nasdaq shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Siebert Financial and Nasdaq”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Siebert Financial	$98.92 million	0.91	$5.12 million	($0.03)	-73.33
Nasdaq	$8.22 billion	6.14	$1.79 billion	$3.43	26.34

Nasdaq has higher revenue and earnings than Siebert Financial. Siebert Financial is trading at a lower price-to-earnings ratio than Nasdaq, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Siebert Financial has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Nasdaq has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Profitability

This table compares Siebert Financial and Nasdaq’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Siebert Financial	-1.07%	-1.25%	-0.15%
Nasdaq	22.60%	18.38%	7.63%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Siebert Financial and Nasdaq, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Siebert Financial	1	0	0	0	1.00
Nasdaq	0	3	9	1	2.85

Nasdaq has a consensus price target of $109.25, suggesting a potential upside of 20.95%. Given Nasdaq’s stronger consensus rating and higher probable upside, analysts clearly believe Nasdaq is more favorable than Siebert Financial.

Summary

Nasdaq beats Siebert Financial on 14 of the 15 factors compared between the two stocks.

About Siebert Financial

Siebert Financial Corp., through its subsidiaries, engages in the retail brokerage and investment advisory businesses in the United States and Internationally. It offers self-directed trading, market making and fixed income investment, stock borrow, stock loan, equity compensation plans, wealth management, and financial advisory services; independent retail execution services; and retail customer services. The company also offers self-directed retirement accounts, as well as lends customers a portion of the market value of marginable securities held in the customer's account. In addition, the company provides data technology platform that offers various 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 platform that provides clients with an automated wealth management solution; and various insurance products, such as fixed annuities, personal insurance, property and casualty insurance, natural disaster insurance, and life and disability. Siebert Financial Corp. was incorporated in 1934 and is headquartered in Miami Beach, Florida.

About Nasdaq

Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. It operates in three segments: Capital Access Platforms, Financial Technology, and Market Services. The Capital Access Platforms segment sells and distributes historical and real-time market data; and develops and licenses Nasdaq-branded indices and financial products. This segment also offers investor relations intelligence, governance solutions, and ESG solutions; and insights and workflow solutions, as well as operates listing platforms. The Financial Technology segment offers Verafin, a cloud-based platform to detect, investigate, and report money laundering and financial frauds; surveillance solutions, including a SaaS platform to assist in complying with market rules, regulations, and internal market surveillance policies; AxiomSL, a risk data management and regulatory reporting solution; and Calypso, a front-to-back trading technology solution for the financial market. This segment also handles assets, comprising cash equities, equity derivatives, currencies, various interest-bearing securities, commodities, energy products, and digital currencies; and trade management and colocation services. The Market Platforms segment offers equity derivative trading and clearing, cash equity trading, fixed income and commodities trading and clearing, and currency trading services. This segment operates various exchanges and other marketplace facilities across various asset classes which includes derivatives, commodities, cash equity, debt, structured products, and exchange traded products; and provides clearing, settlement, and central depository services. The company was formerly known as The NASDAQ OMX Group, Inc. and changed its name to Nasdaq, Inc. in September 2015. Nasdaq, Inc. was founded in 1971 and is headquartered in New York, New York.