Head to Head Review: China Finance Online (JRJC) & Siebert Financial (SIEB)

China Finance Online (NASDAQ:JRJC) and Siebert Financial (NASDAQ:SIEB) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Earnings & Valuation

This table compares China Finance Online and Siebert Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Finance Online $42.62 million 0.97 -$36.73 million N/A N/A
Siebert Financial $13.11 million 26.93 $2.15 million N/A N/A

Siebert Financial has lower revenue, but higher earnings than China Finance Online.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for China Finance Online and Siebert Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Finance Online 0 0 0 0 N/A
Siebert Financial 0 0 0 0 N/A

Volatility and Risk

China Finance Online has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, Siebert Financial has a beta of -0.43, indicating that its stock price is 143% less volatile than the S&P 500.

Profitability

This table compares China Finance Online and Siebert Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Finance Online -52.08% -59.82% -25.00%
Siebert Financial 22.05% 82.77% 69.04%

Insider and Institutional Ownership

2.5% of China Finance Online shares are held by institutional investors. Comparatively, 2.9% of Siebert Financial shares are held by institutional investors. 30.4% of China Finance Online shares are held by company insiders. Comparatively, 67.9% of Siebert Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Siebert Financial beats China Finance Online on 7 of the 9 factors compared between the two stocks.

About China Finance Online

China Finance Online Co. Limited provides Web-based financial services in the People's Republic of China and Hong Kong. The company operates through three segments: Commodities Brokerage Services; Online Financial Information and Advisory Service, and Other Related Services; and Hong Kong Brokerage Services. It provides online access to securities and commodities trading services, wealth management products, and securities investment advisory services to retail investors; and financial database and analytics to institutional investors, including financial, research, academic, and regulatory institutions, as well as financial software products. The company is involved in the operation of Yinglibao, an Internet-based financial platform that integrates wealth management solutions and mutual fund distribution; JRJ mobile app for financial information, securities trading, investment advisory, and wealth management; jrj.com.cn to provide access for wealth management solutions and mutual fund distribution; and jrj.com, a financial information Website. In addition, it provides commodities brokerage services; securities and futures contracts brokerage and related services to its customers, who invest in stocks listed on Hong Kong Stock Exchanges and Clearing Limited; information services; and insurance brokerage services. The company offers its products and services to individual investors managing their own money; professional investors, such as institutional investors managing large sums of money on behalf of their clients and high net worth individuals; and other financial professionals, including investment bankers, stock analysts and financial reporters, and middle class individuals. The company was incorporated in 1998 and is based in Beijing, the People's Republic of China.

About Siebert Financial

Siebert Financial Corp., through its subsidiaries, engages in the retail discount brokerage and investment advisory businesses. The company offers online and traditional brokerage, and related services to retail investors through a broker on the telephone, a wireless device, or through the Internet; various value added services, such as access to account information; independent retail execution services; and retail customer services. It also acts as an agent on various transactions for its self-directed retirement accounts, as well as lends customers a portion of the market value of certain securities held in the customer's account. In addition, the company provides custodial services; and data technology platform that offers services, such as email and messaging, market data systems and third party trading systems, business productivity tools, and customer relationship management systems. It maintains 10 retail discount brokerage offices. The company was founded in 1886 and is headquartered in New York, New York.

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