UBS Group AG (NYSE: UBS) and Noah Holdings (NYSE:NOAH) are both mid-cap financials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Insider & Institutional Ownership

32.6% of UBS Group AG shares are held by institutional investors. Comparatively, 43.4% of Noah Holdings shares are held by institutional investors. 1.0% of UBS Group AG shares are held by 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.

Earnings and Valuation

This table compares UBS Group AG and Noah Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
UBS Group AG $36.28 billion 1.83 $3.25 billion $1.09 15.78
Noah Holdings $362.03 million 7.35 $92.73 million $1.80 26.13

UBS Group AG has higher revenue and earnings than Noah Holdings. UBS Group AG is trading at a lower price-to-earnings ratio than Noah Holdings, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

UBS Group AG has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Noah Holdings has a beta of 2.6, indicating that its stock price is 160% more volatile than the S&P 500.

Dividends

UBS Group AG pays an annual dividend of $0.60 per share and has a dividend yield of 3.5%. Noah Holdings does not pay a dividend. UBS Group AG pays out 55.0% of its earnings in the form of a dividend. UBS Group AG has raised its dividend for 4 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for UBS Group AG and Noah Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UBS Group AG 0 3 5 0 2.63
Noah Holdings 0 0 0 0 N/A

Profitability

This table compares UBS Group AG and Noah Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UBS Group AG 12.52% 7.21% 0.42%
Noah Holdings 29.74% 18.40% 11.94%

Summary

Noah Holdings beats UBS Group AG on 9 of the 15 factors compared between the two stocks.

About UBS Group AG

UBS Group AG is a holding company and conducts its operations through UBS AG and its subsidiaries. The Company comprises Corporate Center and five business divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management and the Investment Bank. Wealth Management division provides advice and tailored financial services to wealthy private clients around the world, except those served by Wealth Management Americas. Wealth Management Americas division is a wealth manager in the Americas in terms of financial advisor productivity and invested assets by financial advisor. Personal & Corporate Banking division provides financial products and services to private, corporate and institutional clients in Switzerland. Asset Management division provides investment management products and services, platform solutions and advisory support. Investment Bank division provides investment advice, financial solutions and capital markets access.

About Noah Holdings

Noah Holdings Limited is a wealth management service provider with a focus on global wealth investment and asset allocation services for high net worth individuals and enterprises in China. The Company operates through three segments: wealth management, asset management and Internet finance. It also provides Internet finance services to clients in China. It provides direct access to China’s high net worth population. With approximately 1,100 relationship managers in over 130 branch offices, its coverage network includes China’s regions where high net worth population is concentrated, including the Yangtze River Delta, the Pearl River Delta, the Bohai Rim and other regions. Its product offerings consist primarily of over-the-counter (OTC) wealth management and OTC asset management products, mutual fund products and asset management plans originated in China and designed to cater to the needs of China’s high net worth population.

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