Critical Contrast: MarketAxess Holdings (MKTX) and Yintech Investment Holdings Limited (YIN)
MarketAxess Holdings (NASDAQ: MKTX) and Yintech Investment Holdings Limited (NASDAQ:YIN) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
This table compares MarketAxess Holdings and Yintech Investment Holdings Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Yintech Investment Holdings Limited||30.09%||33.52%||28.50%|
90.2% of MarketAxess Holdings shares are held by institutional investors. Comparatively, 1.6% of Yintech Investment Holdings Limited shares are held by institutional investors. 4.0% of MarketAxess Holdings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for MarketAxess Holdings and Yintech Investment Holdings Limited, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Yintech Investment Holdings Limited||0||0||1||0||3.00|
MarketAxess Holdings presently has a consensus target price of $192.40, indicating a potential upside of 9.57%. Yintech Investment Holdings Limited has a consensus target price of $15.00, indicating a potential upside of 15.65%. Given Yintech Investment Holdings Limited’s stronger consensus rating and higher possible upside, analysts clearly believe Yintech Investment Holdings Limited is more favorable than MarketAxess Holdings.
Volatility and Risk
MarketAxess Holdings has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Yintech Investment Holdings Limited has a beta of -0.74, indicating that its stock price is 174% less volatile than the S&P 500.
MarketAxess Holdings pays an annual dividend of $1.32 per share and has a dividend yield of 0.8%. Yintech Investment Holdings Limited pays an annual dividend of $0.80 per share and has a dividend yield of 6.2%. MarketAxess Holdings pays out 33.9% of its earnings in the form of a dividend. Yintech Investment Holdings Limited pays out 37.2% 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.
Valuation & Earnings
This table compares MarketAxess Holdings and Yintech Investment Holdings Limited’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MarketAxess Holdings||$385.91 million||17.08||$219.16 million||$3.89||45.14|
|Yintech Investment Holdings Limited||$506.89 million||1.79||$150.76 million||$2.15||6.03|
MarketAxess Holdings has higher revenue, but lower earnings than Yintech Investment Holdings Limited. Yintech Investment Holdings Limited is trading at a lower price-to-earnings ratio than MarketAxess Holdings, indicating that it is currently the more affordable of the two stocks.
MarketAxess Holdings beats Yintech Investment Holdings Limited on 11 of the 17 factors compared between the two stocks.
MarketAxess Holdings Company Profile
MarketAxess Holdings Inc. operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments using its trading technology. Institutional investor and broker-dealer firms are users of trading platform, accessing global liquidity in the United States corporate bonds, emerging markets and high-yield bonds, European bonds, the United States agency bonds, municipal bonds, credit default swaps and other fixed-income securities. Through Open Trading protocols, it executes trades in certain bonds between and among institutional investor and broker-dealer clients in a trading environment on a matched principal basis. It offers trading-related products and services, including market data to assist clients with trading decisions; connectivity solutions that facilitate straight-through processing; technology services to optimize trading environments, and execution services for exchange-traded fund managers.
Yintech Investment Holdings Limited Company Profile
Yintech Investment Holdings Limited is an online provider of spot commodity trading services in China. The Company facilitates the trading by individual customers of silver, gold, and other precious metals and commodities on the Shanghai Gold Exchange, the Tianjin Precious Metals Exchange and the Guangdong Precious Metals Exchange. The Company provides its customers with various services, such as account opening, investor education, market information, research, live discussion boards and real-time customer support. On the Tianjin Precious Metals Exchange and the Guangdong Precious Metals Exchange, the Company serves as counterparty to its customers’ trades. On the Shanghai Gold Exchange, the Company serves as an agent and does not hold principal positions. The Company’s services include investor education, market information provision and research. Its research services include research reports, online lectures, live market commentaries and quantitative analysis.
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