MarketAxess (NASDAQ:MKTX – Get Free Report) and Webull (NASDAQ:BULL – Get Free Report) are both mid-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
99.0% of MarketAxess shares are held by institutional investors. Comparatively, 92.5% of Webull shares are held by institutional investors. 0.7% of MarketAxess shares are held by company insiders. Comparatively, 35.0% of Webull shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares MarketAxess and Webull”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MarketAxess | $846.27 million | 6.85 | $246.63 million | $8.17 | 20.16 |
| Webull | $571.00 million | 5.35 | $24.77 million | $0.08 | 70.62 |
MarketAxess has higher revenue and earnings than Webull. MarketAxess is trading at a lower price-to-earnings ratio than Webull, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
MarketAxess has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Webull has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for MarketAxess and Webull, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MarketAxess | 0 | 12 | 1 | 0 | 2.08 |
| Webull | 1 | 1 | 3 | 0 | 2.40 |
MarketAxess currently has a consensus price target of $159.44, indicating a potential downside of 3.17%. Webull has a consensus price target of $10.00, indicating a potential upside of 76.99%. Given Webull’s stronger consensus rating and higher possible upside, analysts plainly believe Webull is more favorable than MarketAxess.
Profitability
This table compares MarketAxess and Webull’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MarketAxess | 33.51% | 23.15% | 12.43% |
| Webull | 6.26% | 5.95% | 1.60% |
Summary
MarketAxess beats Webull on 9 of the 14 factors compared between the two stocks.
About MarketAxess
MarketAxess Holdings Inc., together with its subsidiaries, operates an electronic trading platform for institutional investor and broker-dealer companies worldwide. The company offers trading technology that provides liquidity access in U.S. high-grade bonds, U.S. high-yield bonds, emerging market debt, eurobonds, municipal bonds, U.S. government bonds, and other fixed-income securities; and executes bond trades between and among institutional investor and broker-dealer clients in an all-to-all anonymous trading environment for corporate bonds through its Open Trading protocols. It also provides trading-related products and services, including composite+ pricing and other market data products to assist clients with trading decisions; auto-execution and other execution services for clients requiring specialized workflow solutions; connectivity solutions that facilitate straight-through processing; and technology services to optimize trading environments. In addition, the company offers various pre-and post-trade services, such as trade matching, trade publication, regulatory transaction reporting, and market and reference data across a range of fixed-income and other products. MarketAxess Holdings Inc. was incorporated in 2000 and is headquartered in New York, New York.
About Webull
Webull Corp. engages in the provision of financial services. It offers trading, wealth management product distribution, market data and information, user community, and investor education. The company was founded by An Quan Wang in 2016 and is headquartered in St. Petersburg, FL.
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