INTL Fcstone (NASDAQ: INTL) and Federal Agricultural Mortgage (NYSE:AGM) are both small-cap financials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.
Institutional and Insider Ownership
64.8% of INTL Fcstone shares are owned by institutional investors. Comparatively, 64.1% of Federal Agricultural Mortgage shares are owned by institutional investors. 20.5% of INTL Fcstone shares are owned by insiders. Comparatively, 3.8% of Federal Agricultural Mortgage shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares INTL Fcstone and Federal Agricultural Mortgage’s gross revenue, earnings per share 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||133.42|
|Federal Agricultural Mortgage||$332.37 million||2.58||$77.33 million||$7.44||10.84|
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.
Risk and Volatility
INTL Fcstone has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Federal Agricultural Mortgage has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for INTL Fcstone and Federal Agricultural Mortgage, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Federal Agricultural Mortgage||0||1||0||0||2.00|
Federal Agricultural Mortgage has a consensus target price of $86.00, suggesting a potential upside of 6.61%. Given Federal Agricultural Mortgage’s higher possible upside, analysts clearly believe Federal Agricultural Mortgage is more favorable than INTL Fcstone.
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|
|Federal Agricultural Mortgage||23.05%||14.81%||0.42%|
Federal Agricultural Mortgage pays an annual dividend of $1.44 per share and has a dividend yield of 1.8%. INTL Fcstone does not pay a dividend. Federal Agricultural Mortgage pays out 19.4% of its earnings in the form of a dividend. INTL Fcstone has increased its dividend for 6 consecutive years.
Federal Agricultural Mortgage beats INTL Fcstone on 8 of the 15 factors compared between the two stocks.
About INTL Fcstone
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.
About Federal Agricultural Mortgage
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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