Critical Review: B. Riley Financial (RILY) & Its Rivals
B. Riley Financial (NASDAQ: RILY) is one of 99 publicly-traded companies in the “Business Support Services” industry, but how does it contrast to its peers? We will compare B. Riley Financial to similar businesses based on the strength of its dividends, risk, valuation, institutional ownership, profitability, analyst recommendations and earnings.
Earnings & Valuation
This table compares B. Riley Financial and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|B. Riley Financial||$190.35 million||$21.52 million||12.62|
|B. Riley Financial Competitors||$1.31 billion||$101.30 million||1,299.39|
B. Riley Financial pays an annual dividend of $0.32 per share and has a dividend yield of 1.7%. B. Riley Financial pays out 21.2% of its earnings in the form of a dividend. As a group, “Business Support Services” companies pay a dividend yield of 1.1% and pay out 25.4% of their earnings in the form of a dividend. B. Riley Financial is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
This table compares B. Riley Financial and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|B. Riley Financial||9.87%||17.98%||4.82%|
|B. Riley Financial Competitors||-19.44%||-19.81%||1.16%|
Institutional and Insider Ownership
46.3% of B. Riley Financial shares are held by institutional investors. Comparatively, 62.4% of shares of all “Business Support Services” companies are held by institutional investors. 30.9% of B. Riley Financial shares are held by insiders. Comparatively, 12.7% of shares of all “Business Support Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of current ratings for B. Riley Financial and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|B. Riley Financial||0||0||0||0||N/A|
|B. Riley Financial Competitors||730||2059||2832||71||2.39|
As a group, “Business Support Services” companies have a potential upside of 4.64%. Given B. Riley Financial’s peers higher possible upside, analysts plainly believe B. Riley Financial has less favorable growth aspects than its peers.
Risk & Volatility
B. Riley Financial has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, B. Riley Financial’s peers have a beta of 1.12, suggesting that their average stock price is 12% more volatile than the S&P 500.
About B. Riley Financial
B. Riley Financial, Inc. is an independent investment bank. The Company’s segments include capital markets, auction and liquidation, valuation and appraisal, and Principal Investments-United Online. The capital markets segment provides an array of investment banking, corporate finance, research, wealth management, sales and trading services to corporate, institutional and high net worth clients. The auction and liquidation segment utilizes a scalable network of independent contractors and industry-specific advisors to tailor its services to the needs of a multitude of clients, logistical challenges and distressed circumstances. The valuation and appraisal segment provides valuation and appraisal services to financial institutions, lenders, private equity firms and other providers of capital. The principal investments-United Online segment consists of businesses, which has been acquired primarily for attractive investment return characteristics.
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