Comparing Charles Schwab (NYSE:SCHW) & TOP Financial Group (NASDAQ:TOP)

Charles Schwab (NYSE:SCHW) and TOP Financial Group (NASDAQ:TOP) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

84.4% of Charles Schwab shares are held by institutional investors. Comparatively, 0.3% of TOP Financial Group shares are held by institutional investors. 6.3% of Charles Schwab shares are held by company insiders. Comparatively, 85.6% of TOP Financial Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Charles Schwab and TOP Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Charles Schwab	2	5	16	1	2.67
TOP Financial Group	1	0	0	0	1.00

Charles Schwab currently has a consensus target price of $106.45, indicating a potential upside of 14.83%. Given Charles Schwab’s stronger consensus rating and higher possible upside, research analysts clearly believe Charles Schwab is more favorable than TOP Financial Group.

Volatility and Risk

Charles Schwab has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, TOP Financial Group has a beta of -1.45, indicating that its stock price is 245% less volatile than the S&P 500.

Earnings & Valuation

This table compares Charles Schwab and TOP Financial Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Charles Schwab	$22.91 billion	7.19	$5.94 billion	$4.27	21.71
TOP Financial Group	$3.33 million	11.69	-$5.97 million	N/A	N/A

Charles Schwab has higher revenue and earnings than TOP Financial Group.

Profitability

This table compares Charles Schwab and TOP Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Charles Schwab	35.93%	21.26%	1.85%
TOP Financial Group	N/A	N/A	N/A

Summary

Charles Schwab beats TOP Financial Group on 11 of the 13 factors compared between the two stocks.

About Charles Schwab

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services. It offers brokerage accounts with equity and fixed income trading, margin lending, options trading, futures and forex trading, and cash management capabilities, including certificates of deposit; third-party mutual funds through the Mutual Fund Marketplace and Mutual Fund OneSource service, as well as mutual fund trading and clearing services to broker-dealers; exchange-traded funds; advisory solutions for managed portfolios, separately managed accounts, customized personal advice for tailored portfolios, specialized planning, and full-time portfolio management; banking products comprising checking and savings accounts, first lien residential real estate mortgage loans, home equity lines of credit, and pledged asset lines; and trust custody services, personal trust reporting services, and administrative trustee services. It also provides digital retirement calculators; integrated web-, mobile-, and software-based trading platforms, real-time market data, options trading, premium research, and multi-channel access; self-service education and support tools; online research and analysis tools; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; retirement plan services; mutual fund clearing services; and advisor services, including interactive tools and educational content. The Company operates through branch offices. The Charles Schwab Corporation was incorporated in 1971 and is headquartered in Westlake, Texas.

About TOP Financial Group

TOP Financial Group Limited, through its subsidiaries, operates as an online brokerage company in Hong Kong. It is involved in the trading of local and overseas equities, futures, and options products; and the provision of brokerage and value-added services, including trade order placement and execution, account management, and customer support services. The company provides a range of futures products, such as index futures, forex futures, agricultural product futures, energy futures, and precious metal futures. It also offers stock brokerage, options brokerage, consulting services, currency exchange services, structured note subscriber services, and margin financing services. The company was formerly known as Zhong Yang Financial Group Limited and changed its name to TOP Financial Group Limited in July 2022. TOP Financial Group Limited was founded in 2015 and is based in Hong Kong, Hong Kong. TOP Financial Group Limited is a subsidiary of Zhong Yang Holdings (BVI) Limited.