Financial Comparison: Lion Group (NASDAQ:LGHL) & GAMCO Investors (NYSE:GAMI)

Lion Group (NASDAQ:LGHL) and GAMCO Investors (NYSE:GAMI) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Profitability

This table compares Lion Group and GAMCO Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lion Group	N/A	N/A	N/A
GAMCO Investors	25.53%	36.38%	24.60%

Analyst Recommendations

This is a summary of current ratings and target prices for Lion Group and GAMCO Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lion Group	0	0	0	0	N/A
GAMCO Investors	0	0	0	0	N/A

Institutional & Insider Ownership

0.2% of Lion Group shares are held by institutional investors. Comparatively, 3.3% of GAMCO Investors shares are held by institutional investors. 8.7% of Lion Group shares are held by insiders. Comparatively, 81.2% of GAMCO Investors shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Lion Group and GAMCO Investors’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lion Group	$27.06 million	0.05	-$31.56 million	N/A	N/A
GAMCO Investors	$235.87 million	2.27	$60.21 million	$2.38	9.09

GAMCO Investors has higher revenue and earnings than Lion Group.

Volatility and Risk

Lion Group has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, GAMCO Investors has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Summary

GAMCO Investors beats Lion Group on 8 of the 9 factors compared between the two stocks.

About Lion Group

Lion Group Holding Ltd., together with its subsidiaries, operates a trading platform for corporate clients, individual traders, and retail investors. Its trading platform offers a range of products and services comprising contracts for difference trading, insurance brokerage, futures and securities brokerage, total return swap trading, and asset management services. The company's trading platform allows users to trade various futures products on futures exchanges worldwide, including the Chicago Mercantile Exchange, Singapore Exchange, the Hong Kong Futures Exchange, and Eurex Exchange; stocks listed on the New York Stock Exchange, Nasdaq and Hong Kong Stock Exchange; and the People's Republic of China stocks listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange that are eligible for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs. It also creates, mints, and sells the MetaWords NFTs; and operates Lion NFT platform for buying and selling the MetaWords NFTs. The company has a strategic partnership with Dawa Future Graphic Technology Co., Ltd. to develop its Lion World Metaverse project. Lion Group Holding Ltd. was founded in 2015 and is headquartered in Singapore.

About GAMCO Investors

GAMCO Investors, Inc. is a publicly owned holding investment manager. The firm also provides wealth management, investment advisory, institutional research, brokerage, dealer, underwriting, and distribution services to its clients. It provides its services to individuals including high net worth individuals, corporate pension and profit-sharing plans, foundations, endowments, jointly trust plans, municipalities, and investment companies. The firm, through its subsidiaries, manages separate client-focused equity, fixed income, and balanced portfolios. It also launches equity, fixed income, and balanced mutual funds and manages equity mutual funds for its clients. Through its subsidiaries the firm invests in the public equity and fixed income markets across the globe. It invests in value stocks of companies. The firm employs fundamental analysis with a focus on bottom-up stock picking approach to create its portfolios. It conducts in-house research to make its investments. The firm was founded in 1976 and is based in Rye, New York with additional offices in Greenwich, Connecticut; Bannockburn, Illinois; and Tokyo, Japan. GAMCO Investors, Inc. operates as a subsidiary of Ggcp Holdings Llc.