Financial Review: Diamond Hill Investment Group (NASDAQ:DHIL) and FXCM (OTCMKTS:GLBR)

FXCM (OTCMKTS:GLBR) and Diamond Hill Investment Group (NASDAQ:DHIL) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for FXCM and Diamond Hill Investment Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FXCM	0	0	0	0	0.00
Diamond Hill Investment Group	0	1	0	0	2.00

Given FXCM’s higher probable upside, equities analysts plainly believe FXCM is more favorable than Diamond Hill Investment Group.

Volatility & Risk

FXCM has a beta of -2.77, meaning that its stock price is 377% less volatile than the S&P 500. Comparatively, Diamond Hill Investment Group has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Institutional & Insider Ownership

65.5% of Diamond Hill Investment Group shares are owned by institutional investors. 9.0% of FXCM shares are owned by company insiders. Comparatively, 4.6% of Diamond Hill Investment Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares FXCM and Diamond Hill Investment Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FXCM	N/A	N/A	N/A	N/A	N/A
Diamond Hill Investment Group	$152.08 million	2.26	$43.18 million	$17.22	7.38

Diamond Hill Investment Group has higher revenue and earnings than FXCM.

Profitability

This table compares FXCM and Diamond Hill Investment Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FXCM	N/A	N/A	N/A
Diamond Hill Investment Group	31.71%	21.38%	14.72%

Summary

Diamond Hill Investment Group beats FXCM on 7 of the 9 factors compared between the two stocks.

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.

About Diamond Hill Investment Group

Diamond Hill Investment Group, Inc., through its subsidiary, Diamond Hill Capital Management, Inc., provides investment advisory and fund administration services in the United States. It offers investment advisory and related services to clients through pooled vehicles, such as private fund; separately managed accounts; collective investment trusts; and other pooled vehicles, including sub-advised funds and model delivery programs. The company also provides fund administration services comprising portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the funds, as well as oversight of back-office service providers, which include the custodian, fund accountant, and transfer agent. Diamond Hill Investment Group, Inc. was incorporated in 1990 and is based in Columbus, Ohio.