National (NASDAQ:NHLD) and Nasdaq (NASDAQ:NDAQ) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.
Insider and Institutional Ownership
13.0% of National shares are owned by institutional investors. Comparatively, 75.7% of Nasdaq shares are owned by institutional investors. 9.2% of National shares are owned by company insiders. Comparatively, 0.4% of Nasdaq shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares National and Nasdaq’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Nasdaq pays an annual dividend of $1.76 per share and has a dividend yield of 1.9%. National does not pay a dividend. Nasdaq pays out 43.3% of its earnings in the form of a dividend. Nasdaq has increased its dividend for 5 consecutive years.
This is a breakdown of current recommendations for National and Nasdaq, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nasdaq has a consensus price target of $95.17, suggesting a potential upside of 5.27%. Given Nasdaq’s higher probable upside, analysts clearly believe Nasdaq is more favorable than National.
Valuation & Earnings
This table compares National and Nasdaq’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National||$189.87 million||0.21||$12.52 million||N/A||N/A|
|Nasdaq||$3.97 billion||3.75||$734.00 million||$4.06||22.27|
Nasdaq has higher revenue and earnings than National.
Volatility & Risk
National has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Nasdaq has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.
Nasdaq beats National on 12 of the 15 factors compared between the two stocks.
National Company Profile
National Holdings Corporation, through its subsidiaries, provides financial services in the United States. The company offers retail brokerage services include execution of purchases and sale of stocks, options, bonds, mutual funds, annuities, and various other securities; and investment advisory services for individual, corporate, and institutional clients. It also provides investment banking services, such as underwriting the sale of securities to the public in initial and follow-on offering, and arranging for the private placement of securities with investors; and financial and corporate advisory services comprising mergers and acquisitions, project financing, capital structure, and specific financing opportunities to micro, small, and mid-cap high growth companies. In addition, the company trades in securities, including making markets in micro and small-cap, NASDAQ, and other exchange listed stocks and provides liquidity in the United States Treasury marketplace. Further, it provides asset management advisory services to retail clients; fixed insurance products, including life insurance, disability insurance, long-term care insurance, and fixed annuities; and tax preparation services to individuals, primarily in the middle and upper income tax brackets, as well as accounting services to small and midsize companies. Additionally, the company offers licensed mortgage brokerage services; and investment products and services, which comprise stocks, bonds, mutual funds, annuities, insurance, and managed money accounts. The company was formerly known as Olympic Cascade Financial Corporation and changed its name to National Holdings Corporation in March 2006. The company was founded in 1947 and is headquartered in New York, New York. National Holdings Corporation is a subsidiary of FBIO Acquisition, Inc.
Nasdaq Company Profile
Nasdaq, Inc. provides trading, clearing, marketplace technology, regulatory, securities listing, information, and public and private company services worldwide. The company's Market Services segment offers equity derivative trading and clearing; cash equity trading; fixed income and commodities trading and clearing; and trade management services. This segment operates various exchanges and other marketplace facilities across various asset classes; and provides broker, clearing, settlement, and central depository services. Its Corporate Services segment offers investor relations products and services, including investor relations content, analytics, and advisory services; communication tools; and public relations solutions. It also provides a platform and services that enable customers to produce Webcasts for investor and public relations, marketing, and internal communications applications; and a collaboration platform for boards of directors or various teams collaborating on confidential initiatives. In addition, this segment operates various listing platforms, which offer capital raising solutions for private and public companies. The company's Information Services segment sells and distributes historical and real-time quote and trade information to market participants and data distributors; and develops and licenses Nasdaq branded indexes, associated derivatives, and financial products, as well as provides custom calculation services. Its Market Technology segment provides solutions for trading, clearing, settlement, surveillance, and information dissemination to markets. It also provides broker services through SMARTS, a managed service designed for brokers and other market participants; and enterprise governance, risk management, and compliance software and services. The company was formerly known as The NASDAQ OMX Group, Inc. and changed its name to Nasdaq, Inc. in September 2015. Nasdaq, Inc. was founded in 1971 and is headquartered in New York, New York.
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