Lazard (LAZ) vs. TD Ameritrade Holding Corporation (AMTD) Head-To-Head Review
Lazard (NYSE: LAZ) and TD Ameritrade Holding Corporation (NASDAQ:AMTD) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Institutional and Insider Ownership
69.1% of Lazard shares are owned by institutional investors. Comparatively, 90.4% of TD Ameritrade Holding Corporation shares are owned by institutional investors. 2.5% of Lazard shares are owned by insiders. Comparatively, 0.4% of TD Ameritrade Holding Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Lazard has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500. Comparatively, TD Ameritrade Holding Corporation has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Lazard and TD Ameritrade Holding Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TD Ameritrade Holding Corporation||0||6||9||0||2.60|
Lazard presently has a consensus price target of $46.29, suggesting a potential upside of 4.44%. TD Ameritrade Holding Corporation has a consensus price target of $44.75, suggesting a potential upside of 1.18%. Given Lazard’s higher possible upside, equities research analysts clearly believe Lazard is more favorable than TD Ameritrade Holding Corporation.
Lazard pays an annual dividend of $1.64 per share and has a dividend yield of 3.7%. TD Ameritrade Holding Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. Lazard pays out 46.5% of its earnings in the form of a dividend. TD Ameritrade Holding Corporation pays out 45.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lazard has increased its dividend for 6 consecutive years. Lazard is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Lazard and TD Ameritrade Holding Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TD Ameritrade Holding Corporation||24.01%||16.09%||2.89%|
Earnings & Valuation
This table compares Lazard and TD Ameritrade Holding Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lazard||$2.64 billion||2.18||$458.07 million||$3.53||12.56|
|TD Ameritrade Holding Corporation||$3.46 billion||6.75||$844.80 million||$1.60||27.64|
TD Ameritrade Holding Corporation has higher revenue and earnings than Lazard. Lazard is trading at a lower price-to-earnings ratio than TD Ameritrade Holding Corporation, indicating that it is currently the more affordable of the two stocks.
TD Ameritrade Holding Corporation beats Lazard on 9 of the 17 factors compared between the two stocks.
Lazard Ltd (Lazard) is a financial advisory and asset management company. The Company operates through two segments: Financial Advisory and Asset Management. It serves a range of clients around the world, including corporations, governments, institutions, partnerships and individuals. The Financial Advisory business segment offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a range of financial advisory services regarding mergers and acquisitions (M&A) and other strategic matters, restructurings, capital structure, capital raising and various other financial matters to corporate, partnership, institutional, government, sovereign and individual clients. The Asset Management business provides investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds and sovereign entities.
About TD Ameritrade Holding Corporation
TD Ameritrade Holding Corporation is a provider of securities brokerage services and related technology-based financial services. The Company provides its services to retail investors, traders and independent registered investment advisors (RIAs). The Company provides its services through the Internet, a national branch network and relationships with RIAs. The Company’s products and services include common and preferred stock, exchange-traded funds, options, futures, foreign exchange, mutual funds, fixed income, new and secondary issue securities, margin lending, cash management services and annuities. The Company uses its platform to offer brokerage services to retail investors and investment advisors. In addition, it also offers various products and services to retail clients, such as touch-tone trading, trading over the Internet, real-time quotes, extended trading hours and direct access to market destinations.
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