Reviewing Computershare (OTCMKTS:CMSQF) & Macquarie Group (OTCMKTS:MQBKY)

Computershare (OTCMKTS:CMSQF) and Macquarie Group (OTCMKTS:MQBKY) are both financial services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Computershare and Macquarie Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Computershare	0	0	2	0	3.00
Macquarie Group	0	1	0	2	3.33

Computershare presently has a consensus target price of $39.50, indicating a potential upside of 76.87%. Given Computershare’s higher probable upside, equities research analysts plainly believe Computershare is more favorable than Macquarie Group.

Earnings and Valuation

This table compares Computershare and Macquarie Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Computershare	N/A	N/A	N/A	$0.48	46.75
Macquarie Group	N/A	N/A	N/A	$4.18	37.70

Macquarie Group is trading at a lower price-to-earnings ratio than Computershare, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

21.9% of Computershare shares are owned by institutional investors. Comparatively, 0.1% of Macquarie Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Computershare pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. Macquarie Group pays an annual dividend of $3.66 per share and has a dividend yield of 2.3%. Computershare pays out 58.6% of its earnings in the form of a dividend. Macquarie Group pays out 87.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Computershare and Macquarie Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Computershare	N/A	N/A	N/A
Macquarie Group	N/A	N/A	N/A

Summary

Computershare beats Macquarie Group on 5 of the 9 factors compared between the two stocks.

About Computershare

Computershare Limited provides issuer, employee share plans and voucher, business, communication and utilities, technology, and mortgage and property rental services. The company offers issuer services that include register maintenance, corporate actions, stakeholder relationship management, corporate governance, and related services; mortgage services and property rental, including tenancy bond protection services; and employee share plans and voucher services comprising administration and related services for employee share and option plans, and childcare voucher administration services. It also provides business services, including the provision of bankruptcy, class action, and corporate trust administration services; communication services and utilities operations consisting of document composition and printing, intelligent mailing, inbound process automation, scanning, and electronic delivery; and technology services, such as software solutions in share registry and financial services, as well as agency services in connection with the administration of debt securities. It operates in Australia, New Zealand, Asia, Canada, Continental Europe, the United Kingdom, the Channel Islands, Ireland, Africa, and the United States. The company was incorporated in 1978 and is based in Abbotsford, Australia.

About Macquarie Group

Macquarie Group Limited provides diversified financial services in Australia, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Macquarie Asset Management (MAM), Banking and Financial Services (BFS), Commodities and Global Markets (CGM), and Macquarie Capital. The MAM segment provides investment solutions to clients across various capabilities in private markets and public investments, including infrastructure, green investments, agriculture and natural assets, real estate, private credit, asset finance, equities, fixed income, and multi-asset solutions. The BFS segment offers personal banking products comprising home loans, car loans, transaction and savings accounts, and credit cards; and wrap platform and cash management, financial advisory, and private banking services, as well as investment and superannuation products. It also provides deposit, lending, and payment solutions and services to business clients. The CGM segment provides risk management, lending and financing, capital solutions, market access, and physical execution and logistics to corporate and institutional clients; and specialist finance and asset management solutions. The Macquarie Capital segment provides advisory and capital raising services. It is also involved in development and investment in infrastructure and energy projects and companies; and brokerage business, including equity research, sales, execution capabilities, and corporate access. Macquarie Group Limited was founded in 1969 and is headquartered in Sydney, Australia.