INTL Fcstone (NASDAQ: INTL) and Federal Agricultural Mortgage (NYSE:AGM) are both small-cap financials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Dividends

Federal Agricultural Mortgage pays an annual dividend of $1.44 per share and has a dividend yield of 1.9%. INTL Fcstone does not pay a dividend. Federal Agricultural Mortgage pays out 19.4% of its earnings in the form of a dividend. Federal Agricultural Mortgage has raised its dividend for 5 consecutive years.

Risk & Volatility

INTL Fcstone has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Federal Agricultural Mortgage has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for INTL Fcstone and Federal Agricultural Mortgage, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
INTL Fcstone 0 0 0 0 N/A
Federal Agricultural Mortgage 0 1 0 0 2.00

Federal Agricultural Mortgage has a consensus price target of $86.00, indicating a potential upside of 11.03%. Given Federal Agricultural Mortgage’s higher probable upside, analysts plainly believe Federal Agricultural Mortgage is more favorable than INTL Fcstone.

Institutional & Insider Ownership

65.0% of INTL Fcstone shares are held by institutional investors. Comparatively, 63.9% of Federal Agricultural Mortgage shares are held by institutional investors. 20.7% of INTL Fcstone shares are held by insiders. Comparatively, 3.8% of Federal Agricultural Mortgage shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares INTL Fcstone and Federal Agricultural Mortgage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
INTL Fcstone 0.02% 1.41% 0.10%
Federal Agricultural Mortgage 23.05% 14.81% 0.42%

Valuation & Earnings

This table compares INTL Fcstone and Federal Agricultural Mortgage’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
INTL Fcstone $29.42 billion 0.03 $6.40 million $0.33 130.06
Federal Agricultural Mortgage $332.37 million 2.48 $77.33 million $7.44 10.41

Federal Agricultural Mortgage has lower revenue, but higher earnings than INTL Fcstone. Federal Agricultural Mortgage is trading at a lower price-to-earnings ratio than INTL Fcstone, indicating that it is currently the more affordable of the two stocks.

Summary

Federal Agricultural Mortgage beats INTL Fcstone on 9 of the 15 factors compared between the two stocks.

INTL Fcstone Company Profile

INTL Fcstone Inc. is a financial services company. The Company provides financial products, and advisory and execution service. The Company operates through five segments: Commercial Hedging, Global Payments, Securities, Physical Commodities, and Clearing and Execution Services (CES). The Commercial Hedging segment serves its commercial clients through its team of risk management consultants. The Global Payments segment provides global payment solutions to banks and commercial businesses, as well as charities and non-governmental organizations and government organizations. The Securities segment provides solutions that facilitate cross-border trading. The Physical Commodities segment consists of its physical precious metals trading and physical agricultural and energy commodity businesses. The CES segment seeks to provide clearing and execution of exchange-traded futures and options for the institutional and trader market segments.

Federal Agricultural Mortgage Company Profile

Federal Agricultural Mortgage Corporation (Farmer Mac) provides a secondary market for a range of loans made to borrowers in rural America. The Company’s segments include Farm & Ranch, USDA Guarantees, Rural Utilities, Institutional Credit and Corporate. Its secondary market activities are purchasing eligible loans directly from lenders; providing advances against eligible loans by purchasing obligations secured by those loans; securitizing assets and guaranteeing the payment of principal and interest on the resulting securities that represent interests in, or obligations secured by, pools of eligible loans; and issuing long-term standby purchase commitments (LTSPCs) for eligible loans. The loans eligible for the secondary market provided by Farmer Mac include mortgage loans secured by first liens on agricultural real estate, including part-time farms and rural housing (comprising the assets eligible for the Farm & Ranch line of business).

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