Analyzing Rithm Capital (NYSE:RITM) & Lion Group (NASDAQ:LGHL)

Rithm Capital (NYSE:RITM) and Lion Group (NASDAQ:LGHL) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Insider & Institutional Ownership

44.9% of Rithm Capital shares are held by institutional investors. Comparatively, 0.2% of Lion Group shares are held by institutional investors. 0.6% of Rithm Capital shares are held by insiders. Comparatively, 8.7% of Lion Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Rithm Capital and Lion Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Capital	1	0	10	0	2.82
Lion Group	1	0	0	0	1.00

Rithm Capital presently has a consensus price target of $13.65, suggesting a potential upside of 46.70%. Given Rithm Capital’s stronger consensus rating and higher possible upside, equities analysts plainly believe Rithm Capital is more favorable than Lion Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rithm Capital	14.44%	19.48%	2.87%
Lion Group	N/A	N/A	N/A

Risk and Volatility

Rithm Capital has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Lion Group has a beta of 2.74, indicating that its stock price is 174% more volatile than the S&P 500.

Valuation and Earnings

This table compares Rithm Capital and Lion Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rithm Capital	$4.59 billion	1.13	$681.45 million	$1.09	8.54
Lion Group	$9.39 million	0.27	-$4.96 million	N/A	N/A

Rithm Capital has higher revenue and earnings than Lion Group.

Summary

Rithm Capital beats Lion Group on 10 of the 12 factors compared between the two stocks.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.

About Lion Group

Lion Group Holding Ltd., together with its subsidiaries, operates a trading platform for corporate clients, individual traders, and retail investors primarily in the People's Republic of China and Southeast Asia. Its trading platform offers a range of products and services comprising contracts for difference trading, over-the-counter stock options trading, futures and securities brokerage, and total return swap trading services through its Lion Brokers Pro app platform. The company's trading platform allows users to trade various futures products on futures exchanges worldwide, including the Chicago Mercantile Exchange, Singapore Exchange, the Hong Kong Futures Exchange, and Eurex Exchange; stocks listed on the New York Stock Exchange, Nasdaq and Hong Kong Stock Exchange; and the People's Republic of China stocks listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange that are eligible for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs. It markets its products mainly through search engines, social media, app stores, and third-party websites. Lion Group Holding Ltd. was founded in 2015 and is headquartered in Singapore.