Contrasting Noah (NYSE:NOAH) and Binah Capital Group (NASDAQ:BCG)

Binah Capital Group (NASDAQ:BCG) and Noah (NYSE:NOAH) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Binah Capital Group and Noah, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Binah Capital Group	1	0	0	0	1.00
Noah	1	2	1	0	2.00

Noah has a consensus target price of $10.75, indicating a potential downside of 4.07%. Given Noah’s stronger consensus rating and higher possible upside, analysts plainly believe Noah is more favorable than Binah Capital Group.

Institutional and Insider Ownership

5.0% of Binah Capital Group shares are owned by institutional investors. Comparatively, 42.7% of Noah shares are owned by institutional investors. 1.9% of Binah Capital Group shares are owned by company insiders. Comparatively, 47.2% of Noah shares are owned 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.

Profitability

This table compares Binah Capital Group and Noah’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Binah Capital Group	0.58%	509.27%	1.55%
Noah	25.99%	7.23%	6.12%

Earnings and Valuation

This table compares Binah Capital Group and Noah”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Binah Capital Group	$176.76 million	0.25	-$4.56 million	$0.03	87.67
Noah	$356.33 million	2.08	$65.14 million	$1.29	8.69

Noah has higher revenue and earnings than Binah Capital Group. Noah is trading at a lower price-to-earnings ratio than Binah Capital Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Binah Capital Group has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Noah has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Summary

Noah beats Binah Capital Group on 12 of the 14 factors compared between the two stocks.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.

About Noah

Noah Holdings Limited, together with its subsidiaries, operates as a wealth and asset management service provider with the focus on investment and asset allocation services for high net worth individuals and enterprises in Mainland of China, Hong Kong, and internationally. It operates through three segments: Wealth Management, Asset Management, and Other Services. The company offers investment products, including domestic and overseas mutual fund products, private secondary products, and other products; customized value-added financial services, such as investor education and trust services, as well as insurance brokerage services; and insurance products. It also provides onshore and offshore private equity, real estate, public securities, multi-strategy, and other investment products, as well as lending services. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.