TD Ameritrade (NASDAQ:AMTD) and Futu (NASDAQ:FHL) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

91.7% of TD Ameritrade shares are owned by institutional investors. 0.4% of TD Ameritrade shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares TD Ameritrade and Futu’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TD Ameritrade $5.45 billion 5.39 $1.47 billion $3.34 15.69
Futu N/A N/A N/A N/A N/A

TD Ameritrade has higher revenue and earnings than Futu.

Dividends

TD Ameritrade pays an annual dividend of $1.20 per share and has a dividend yield of 2.3%. Futu does not pay a dividend. TD Ameritrade pays out 35.9% of its earnings in the form of a dividend. TD Ameritrade has raised its dividend for 9 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for TD Ameritrade and Futu, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TD Ameritrade 0 5 9 0 2.64
Futu 0 2 0 0 2.00

TD Ameritrade presently has a consensus price target of $62.96, suggesting a potential upside of 20.17%. Futu has a consensus price target of $17.62, suggesting a potential upside of 6.27%. Given TD Ameritrade’s stronger consensus rating and higher probable upside, research analysts plainly believe TD Ameritrade is more favorable than Futu.

Profitability

This table compares TD Ameritrade and Futu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TD Ameritrade 31.17% 25.99% 5.50%
Futu N/A N/A N/A

Summary

TD Ameritrade beats Futu on 11 of the 12 factors compared between the two stocks.

About TD Ameritrade

TD Ameritrade Holding Corporation provides securities brokerage and related technology-based financial services to retail investors and traders, and independent registered investment advisors (RIAs) in the United States. It offers trade execution, clearing, and margin lending services; futures and foreign exchange trade execution services; and trustee, custodial, and other trust-related services to retirement plans and other custodial accounts, as well as provides cash sweep and deposit account products through third-party relationships. The company offers retail brokerage services for common and preferred stocks; exchange-traded funds (ETFs); options; futures; foreign exchange; mutual funds; fixed income products; primary and secondary offerings of fixed income securities, closed-end funds, and preferred stocks; margin lending; cash management services; and annuities. It operates tdameritrade.com, a Web platform for self-directed retail investors; thinkorswim, a desktop platform for traders; and TD Ameritrade Mobile, which allows on-the-go investors and traders to trade and monitor accounts from Web-enabled mobile devices. The company also offers investor education services for stocks, options, income investing, and portfolio management; AdvisorDirect, a national referral service for investors; real-time market news, insights, and investor education services; and self-directed brokerage services to employees of corporations. TD Ameritrade Holding Corporation provides its services primarily through the Internet, a network of retail branches, mobile trading applications, interactive voice response, and registered representatives through telephone. The company was founded in 1971 and is headquartered in Omaha, Nebraska.

About Futu

Futu Holdings Limited operates digitized brokerage platform in Hong Kong, China, Japan, the United States, and internationally. Its platform offers investing services, including trade execution and margin financing which allows to trade securities, such as stocks, warrants, options and exchange-traded funds, or ETFs, across different markets; market data and information; and securities lending services. The company was founded in 2011 and is headquartered in Sheung Wan, Hong Kong.

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