Siebert Financial (NASDAQ:SIEB) and Capital Financial (OTCMKTS:CPFH) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Risk and Volatility

Siebert Financial has a beta of -0.45, indicating that its share price is 145% less volatile than the S&P 500. Comparatively, Capital Financial has a beta of 253.74, indicating that its share price is 25,274% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Siebert Financial and Capital Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Siebert Financial 0 0 0 0 N/A
Capital Financial 0 0 0 0 N/A

Insider and Institutional Ownership

3.8% of Siebert Financial shares are owned by institutional investors. 67.9% of Siebert Financial shares are owned by company insiders. Comparatively, 54.0% of Capital Financial 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.

Profitability

This table compares Siebert Financial and Capital Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Siebert Financial 25.77% 90.11% 75.71%
Capital Financial 0.76% 20.67% 2.08%

Earnings & Valuation

This table compares Siebert Financial and Capital Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Siebert Financial $13.11 million 25.11 $2.15 million N/A N/A
Capital Financial $15.57 million N/A -$130,000.00 N/A N/A

Siebert Financial has higher earnings, but lower revenue than Capital Financial.

Dividends

Capital Financial pays an annual dividend of $50.00 per share and has a dividend yield of 4.0%. Siebert Financial does not pay a dividend.

Summary

Siebert Financial beats Capital Financial on 6 of the 9 factors compared between the two stocks.

About Siebert Financial

Siebert Financial Corp., through its subsidiaries, engages in the retail discount brokerage and investment advisory businesses. The company offers online and traditional brokerage, and related services to retail investors through a broker on the telephone, a wireless device, or through the Internet; various value added services, such as access to account information; independent retail execution services; and retail customer services. It also acts as an agent on various transactions for its self-directed retirement accounts, as well as lends customers a portion of the market value of certain securities held in the customer's account. In addition, the company provides custodial services; and data technology platform that offers services, such as email and messaging, market data systems and third party trading systems, business productivity tools, and customer relationship management systems. It maintains 10 retail discount brokerage offices. The company was founded in 1886 and is headquartered in New York, New York.

About Capital Financial

Capital Financial Holdings, Inc., a full-service brokerage firm, provides investment products and services to independent investment representatives, financial planners, and investment advisors in the United States. It offers mutual funds, insurance products, and various other securities, as well as investment advisory services. The company was formerly known as Integrity Mutual Funds, Inc. and changed its name to Capital Financial Holdings, Inc. in May 2009. Capital Financial Holdings, Inc. was founded in 1987 and is headquartered in Minot, North Dakota.

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