Nasdaq (NASDAQ: NDAQ) and INTL Fcstone (NASDAQ:INTL) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Volatility and Risk

Nasdaq has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, INTL Fcstone has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Profitability

This table compares Nasdaq and INTL Fcstone’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nasdaq 17.88% 12.93% 4.83%
INTL Fcstone 0.02% 5.62% 0.39%

Institutional and Insider Ownership

74.8% of Nasdaq shares are owned by institutional investors. Comparatively, 71.1% of INTL Fcstone shares are owned by institutional investors. 0.4% of Nasdaq shares are owned by company insiders. Comparatively, 20.5% of INTL Fcstone shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Nasdaq pays an annual dividend of $1.52 per share and has a dividend yield of 1.6%. INTL Fcstone does not pay a dividend. Nasdaq pays out 37.4% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Nasdaq and INTL Fcstone’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nasdaq $3.97 billion 4.03 $734.00 million $4.06 23.55
INTL Fcstone $29.42 billion 0.03 $6.40 million N/A N/A

Nasdaq has higher earnings, but lower revenue than INTL Fcstone.

Analyst Ratings

This is a summary of current ratings and recommmendations for Nasdaq and INTL Fcstone, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nasdaq 1 6 5 0 2.33
INTL Fcstone 0 0 0 0 N/A

Nasdaq presently has a consensus target price of $87.54, indicating a potential downside of 8.45%. Given Nasdaq’s higher possible upside, equities research analysts clearly believe Nasdaq is more favorable than INTL Fcstone.

Summary

Nasdaq beats INTL Fcstone on 9 of the 14 factors compared between the two stocks.

Nasdaq Company Profile

Nasdaq, Inc. provides trading, clearing, marketplace technology, regulatory, securities listing, information, and public and private company services worldwide. The company's Market Services segment offers equity derivative trading and clearing; cash equity trading; fixed income and commodities trading and clearing; and trade management services. This segment operates various exchanges and other marketplace facilities across various asset classes; and provides broker, clearing, settlement, and central depository services. Its Corporate Services segment offers investor relations products and services, including investor relations content, analytics, and advisory services; communication tools; and public relations solutions. It also provides a platform and services that enable customers to produce Webcasts for investor and public relations, marketing, and internal communications applications; and a collaboration platform for boards of directors or various teams collaborating on confidential initiatives. In addition, this segment operates various listing platforms, which offer capital raising solutions for private and public companies. The company's Information Services segment sells and distributes historical and real-time quote and trade information to market participants and data distributors; and develops and licenses Nasdaq branded indexes, associated derivatives, and financial products, as well as provides custom calculation services. Its Market Technology segment provides solutions for trading, clearing, settlement, surveillance, and information dissemination to markets. It also provides broker services through SMARTS, a managed service designed for brokers and other market participants; and enterprise governance, risk management, and compliance software and services. The company was formerly known as The NASDAQ OMX Group, Inc. and changed its name to Nasdaq, Inc. in September 2015. Nasdaq, Inc. was founded in 1971 and is headquartered in New York, New York.

INTL Fcstone Company Profile

INTL FCStone Inc. operates as a financial services company worldwide. The company's Commercial Hedging segment offers risk management consulting services related to agricultural and energy commodities, and base metal products listed on the London Metals Exchange. Its Global Payments segment provides payment solutions to banks and commercial businesses; and charities and non-governmental organizations, and government organizations. The company's Securities segment offers value-added solutions that facilitate cross-border trading in foreign securities, including unlisted American Depositary Receipts, Global Depository Receipts, and foreign ordinary shares. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies. In addition, it originates, structures, and places debt instruments; trades in various international debt instruments; and offers asset management services. The company's Physical Commodities segment provides a range of trading and hedging services comprising OTC products for selecting producers, consumers, and investors. This segment also offers financing services to commercial commodity-related companies against physical inventories. The company's Clearing and Execution Services segment offers prime brokerage foreign exchange services for the financial institutions and professional traders; provides a range of OTC products, including 24-hour a day execution of spot, forwards, and options, as well as non-deliverable forwards; and operates a proprietary foreign exchange desk that arbitrages the exchange-traded foreign exchange markets with the cash markets. The company was formerly known as International Assets Holding Corporation and changed its name to INTL FCStone Inc. in March 2011. INTL FCStone Inc. was founded in 1924 and is based in New York, New York.

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