Head to Head Analysis: Nomura (NMR) versus Siebert Financial (SIEB)

Nomura (NYSE:NMR) and Siebert Financial (NASDAQ:SIEB) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Dividends

Nomura pays an annual dividend of $0.04 per share and has a dividend yield of 1.0%. Siebert Financial does not pay a dividend.

Earnings & Valuation

This table compares Nomura 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
Nomura $13.82 billion 1.02 $1.97 billion N/A N/A
Siebert Financial $13.11 million 22.42 $2.15 million N/A N/A

Nomura has higher revenue and earnings than Siebert Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
Nomura 5.79% 3.64% 0.24%
Siebert Financial 25.77% 90.11% 75.71%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Nomura and Siebert Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nomura 0 1 3 0 2.75
Siebert Financial 0 0 0 0 N/A

Insider and Institutional Ownership

0.7% of Nomura shares are held by institutional investors. Comparatively, 3.8% of Siebert Financial shares are held by institutional investors. 67.9% of Siebert Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Nomura has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Siebert Financial has a beta of -0.45, meaning that its stock price is 145% less volatile than the S&P 500.

Summary

Siebert Financial beats Nomura on 7 of the 12 factors compared between the two stocks.

About Nomura

Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. It operates through three segments: Retail, Asset Management, and Wholesale. The Retail segment offers various financial products and investment services for individuals and corporations. As of March 31, 2018, this segment operated a network of 156 branches. The Asset Management segment engages in the development and management of investment trusts, including low risk/low return products and high risk/high return products, as well as products for various investor needs; and provision of investment advisory services to public pension funds, private pension funds, governments and their agencies, central banks, and institutional investors. The Wholesale segment is involved in the research, sale, trading, agency execution, and market-making of fixed income and equity-related products. It also engages in underwriting various securities and other financial instruments, such as various stocks, convertible and exchangeable securities, investment grade debts, sovereign and emerging market debts, high yield debts, structured securities, and other securities; arranging private placements, as well as other capital raising activities; and the provision of financial advisory services on business transactions comprising mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions. In addition, this segment offers various financial instruments that include equity securities, debt securities, investment trusts, and variable annuity insurance products for the short, medium, and long-terms. The company was formerly known as The Nomura Securities Co., Ltd. and changed its name to Nomura Holdings, Inc. in October 2001. Nomura Holdings, Inc. was founded in 1925 and is headquartered in Tokyo, Japan.

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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