Cowen Group (NASDAQ: COWN) and Nomura Holdings Inc ADR (NYSE:NMR) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitabiliy and analyst recommendations.

Profitability

This table compares Cowen Group and Nomura Holdings Inc ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cowen Group -2.59% -2.38% -0.97%
Nomura Holdings Inc ADR 15.29% 8.49% 0.55%

Insider and Institutional Ownership

88.9% of Cowen Group shares are owned by institutional investors. Comparatively, 0.6% of Nomura Holdings Inc ADR shares are owned by institutional investors. 4.9% of Cowen Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Cowen Group and Nomura Holdings Inc ADR’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cowen Group $399.60 million 1.10 -$19.55 million ($0.72) -22.57
Nomura Holdings Inc ADR $12.55 billion 1.65 $2.16 billion $0.61 9.61

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cowen Group and Nomura Holdings Inc ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cowen Group 0 1 0 0 2.00
Nomura Holdings Inc ADR 0 4 1 0 2.20

Cowen Group currently has a consensus target price of $17.00, indicating a potential upside of 4.62%. Given Cowen Group’s higher probable upside, equities analysts plainly believe Cowen Group is more favorable than Nomura Holdings Inc ADR.

Dividends

Nomura Holdings Inc ADR pays an annual dividend of $0.07 per share and has a dividend yield of 1.2%. Cowen Group does not pay a dividend. Nomura Holdings Inc ADR pays out 11.5% of its earnings in the form of a dividend.

Risk and Volatility

Cowen Group has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, Nomura Holdings Inc ADR has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.

Summary

Nomura Holdings Inc ADR beats Cowen Group on 10 of the 15 factors compared between the two stocks.

Cowen Group Company Profile

Cowen Inc., formerly Cowen Group, Inc., is a financial services company. The Company provides alternative investment management, investment banking, research, sales and trading, and prime brokerage services. It operates through two segments: alternative investment and broker-dealer. The alternative investment segment includes private equity structures, registered investment companies and listed investment vehicles. The broker-dealer segment offers industry focused investment banking for growth-oriented companies, including advisory and global capital markets origination and domain knowledge-driven research, and a sales and trading platform for institutional investors. Its alternative investment platform, which operates under the Ramius name, offers investment products and solutions across the liquidity spectrum to institutional and private clients. Ramius offers investors access to strategies to meet their specific needs, including long/short equity and event driven equity.

Nomura Holdings Inc ADR Company Profile

Nomura Holdings, Inc. (Nomura) is a financial services company. The Company, through its broker-dealer, banking and other financial services subsidiaries, provide investment, financing and related services to individual, institutional and government clients across the world. The Company’s segments include Retail, Asset Management and Wholesale. Its clients include individuals, corporations, financial institutions, governments and governmental agencies. The Company’s Retail segment provides investment consultation services to individual clients in Japan. The Company’s Asset Management segment develops and manages investment trusts, and provides investment advisory services. The Company’s Wholesale segment is engaged in the sales and trading of debt and equity securities, derivatives, and currencies on a global basis, and provides investment banking services, such as the underwriting of debt and equity securities, as well as mergers and acquisitions and financial advice.

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