China Finance Online Co. Limited (NASDAQ: JRJC) and Broadridge Financial Solutions (NYSE:BR) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitabiliy, earnings, risk and valuation.
Earnings & Valuation
This table compares China Finance Online Co. Limited and Broadridge Financial Solutions’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|China Finance Online Co. Limited||N/A||N/A||N/A||($0.62)||-2.56|
|Broadridge Financial Solutions||$3.77 billion||2.35||$660.00 million||$2.56||29.39|
Broadridge Financial Solutions has higher revenue and earnings than China Finance Online Co. Limited. China Finance Online Co. Limited is trading at a lower price-to-earnings ratio than Broadridge Financial Solutions, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
China Finance Online Co. Limited has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500. Comparatively, Broadridge Financial Solutions has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
This is a breakdown of current ratings and recommmendations for China Finance Online Co. Limited and Broadridge Financial Solutions, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Finance Online Co. Limited||0||0||0||0||N/A|
|Broadridge Financial Solutions||0||2||1||0||2.33|
Broadridge Financial Solutions has a consensus price target of $75.00, suggesting a potential downside of 0.31%. Given Broadridge Financial Solutions’ higher possible upside, analysts plainly believe Broadridge Financial Solutions is more favorable than China Finance Online Co. Limited.
This table compares China Finance Online Co. Limited and Broadridge Financial Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Finance Online Co. Limited||-20.77%||-31.23%||-17.17%|
|Broadridge Financial Solutions||8.21%||34.74%||11.62%|
Broadridge Financial Solutions pays an annual dividend of $1.32 per share and has a dividend yield of 1.8%. China Finance Online Co. Limited does not pay a dividend. Broadridge Financial Solutions pays out 51.6% of its earnings in the form of a dividend. Broadridge Financial Solutions has increased its dividend for 9 consecutive years.
Insider & Institutional Ownership
7.2% of China Finance Online Co. Limited shares are held by institutional investors. Comparatively, 84.8% of Broadridge Financial Solutions shares are held by institutional investors. 30.4% of China Finance Online Co. Limited shares are held by company insiders. Comparatively, 3.5% of Broadridge Financial Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Broadridge Financial Solutions beats China Finance Online Co. Limited on 10 of the 13 factors compared between the two stocks.
About China Finance Online Co. Limited
China Finance Online Co. Limited is a Web-based financial services company in China. The Company provides Chinese retail investors with online access to securities and commodities trading services, wealth management products, securities investment advisory services, as well as financial database and analytics services to institutional customers. The Company operates through three segments: commodities brokerage services, online financial information and advisory service, and other related services in the People’s Republic of China (PRC), and Hong Kong brokerage services. The Company offers financial software, information services and securities investment advisory services to retail investors in China. Through its subsidiary, Shenzhen Genius Information Technology Co., Ltd., the Company provides financial database and analytics to institutional customers, including domestic financial, research, academic and regulatory institutions.
About Broadridge Financial Solutions
Broadridge Financial Solutions, Inc. (Broadridge) is a provider of investor communications and technology-driven solutions to banks, broker-dealers, mutual funds and corporate issuers. The Company’s segments include Investor Communication Solutions, and Global Technology and Operations. The Company offers Bank/Broker-Dealer Investor Communication Solutions, Customer Communication Solutions, Corporate Issuer Solutions, Advisor Solutions and Mutual Fund and Retirement Solutions through Investor Communication Solutions segment. The Company offers a middle- and back-office securities processing platform for North American and global broker-dealers. Its services include investor and customer communications, securities processing, and data and analytics solutions. The Company delivers a range of solutions that helps its clients serve their retail and institutional customers across the entire investment lifecycle, including pre-trade, trade, and post-trade processing functionality.
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