E*TRADE Financial Corporation (NASDAQ: ETFC) and Nomura Holdings Inc ADR (NYSE:NMR) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitabiliy, institutional ownership, dividends, analyst recommendations and valuation.

Valuation & Earnings

This table compares E*TRADE Financial Corporation and Nomura Holdings Inc ADR’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
E*TRADE Financial Corporation $2.32 billion 4.89 $592.13 million $2.15 19.17
Nomura Holdings Inc ADR $12.68 billion 1.78 $2.41 billion $0.63 9.37

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

Dividends

Nomura Holdings Inc ADR pays an annual dividend of $0.07 per share and has a dividend yield of 1.2%. E*TRADE Financial Corporation does not pay a dividend. Nomura Holdings Inc ADR pays out 11.1% of its earnings in the form of a dividend.

Profitability

This table compares E*TRADE Financial Corporation and Nomura Holdings Inc ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
E*TRADE Financial Corporation 28.42% 9.06% 1.03%
Nomura Holdings Inc ADR 15.47% 8.69% 0.57%

Risk & Volatility

E*TRADE Financial Corporation has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Nomura Holdings Inc ADR has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.

Institutional & Insider Ownership

92.6% of E*TRADE Financial Corporation shares are owned by institutional investors. Comparatively, 0.6% of Nomura Holdings Inc ADR shares are owned by institutional investors. 0.2% of E*TRADE Financial Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for E*TRADE Financial Corporation and Nomura Holdings Inc ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
E*TRADE Financial Corporation 0 5 12 0 2.71
Nomura Holdings Inc ADR 0 3 1 0 2.25

E*TRADE Financial Corporation currently has a consensus price target of $41.33, suggesting a potential upside of 0.30%. Given E*TRADE Financial Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe E*TRADE Financial Corporation is more favorable than Nomura Holdings Inc ADR.

Summary

E*TRADE Financial Corporation beats Nomura Holdings Inc ADR on 12 of the 16 factors compared between the two stocks.

E*TRADE Financial Corporation Company Profile

E*Trade Financial Corporation is a financial services company. The Company provides online brokerage and related products and services primarily to individual retail investors under the brand E*TRADE Financial. The Company also provides investor-focused banking products, primarily sweep deposits, to retail investors. It provides its services to customers through its digital platforms and network of industry-licensed customer service representatives and Financial Consultants, over the phone and by e-mail. The Company’s brokerage business is organized into three product areas: Trading, Investing, and Corporate Services. The Company’s Trading products deliver automated trade order placement and execution services. The Company’s Investing products help investors build wealth and address their long-term investing needs. The Company’s Corporate Services channel provides stock plan administration services for both public and private companies.

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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