Critical Comparison: Financial Engines (FNGN) vs. Its Rivals
Financial Engines (NASDAQ: FNGN) is one of 59 publicly-traded companies in the “Investment Management” industry, but how does it weigh in compared to its competitors? We will compare Financial Engines to related businesses based on the strength of its earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
This table compares Financial Engines and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Financial Engines Competitors||30.98%||108.59%||29.20%|
This is a summary of current recommendations and price targets for Financial Engines and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Financial Engines Competitors||666||2050||1977||41||2.29|
Financial Engines presently has a consensus price target of $43.00, suggesting a potential upside of 22.86%. As a group, “Investment Management” companies have a potential downside of 3.40%. Given Financial Engines’ stronger consensus rating and higher possible upside, equities analysts clearly believe Financial Engines is more favorable than its competitors.
Earnings & Valuation
This table compares Financial Engines and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Financial Engines||$458.22 million||$84.14 million||54.69|
|Financial Engines Competitors||$817.34 million||$231.50 million||-10.97|
Financial Engines’ competitors have higher revenue and earnings than Financial Engines. Financial Engines is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Risk & Volatility
Financial Engines has a beta of 2.2, meaning that its stock price is 120% more volatile than the S&P 500. Comparatively, Financial Engines’ competitors have a beta of 1.42, meaning that their average stock price is 42% more volatile than the S&P 500.
Financial Engines pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Financial Engines pays out 43.8% of its earnings in the form of a dividend. As a group, “Investment Management” companies pay a dividend yield of 3.5% and pay out 65.6% of their earnings in the form of a dividend.
Institutional and Insider Ownership
47.8% of shares of all “Investment Management” companies are held by institutional investors. 16.0% of Financial Engines shares are held by insiders. Comparatively, 26.7% of shares of all “Investment Management” companies are held 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.
Financial Engines competitors beat Financial Engines on 9 of the 15 factors compared.
Financial Engines Company Profile
Financial Engines, Inc. is a provider of independent, technology-enabled financial advisory services, discretionary portfolio management, personalized investment advice, financial and retirement income planning, and financial education and guidance. The Company offers personalized plans for saving, investing, and generating retirement income, as well as by providing assessments of retirement income needs and readiness. The Company’s advice and planning services cover employer-sponsored defined contribution (DC) accounts (401(k), 457, and 403(b) plans), individual retirement account (IRA) accounts, and taxable accounts. For individuals, the Company provides discretionary portfolio management, personalized investment advice, financial and retirement income planning, financial education and guidance. The Company maintains two types of relationships with individuals: DC plan participants in the workplace and Individuals outside the workplace.
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