Critical Review: Woodstock (WSFL) and Raymond James (RJF)

Woodstock (OTCMKTS:WSFL) and Raymond James (NYSE:RJF) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Dividends

Raymond James pays an annual dividend of $1.36 per share and has a dividend yield of 1.8%. Woodstock does not pay a dividend. Raymond James pays out 21.0% of its earnings in the form of a dividend. Raymond James has increased its dividend for 6 consecutive years.

Institutional and Insider Ownership

72.7% of Raymond James shares are held by institutional investors. 10.5% of Raymond James shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Woodstock and Raymond James, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Woodstock 0 0 0 0 N/A
Raymond James 0 4 5 0 2.56

Raymond James has a consensus price target of $95.43, suggesting a potential upside of 24.68%. Given Raymond James’ higher possible upside, analysts clearly believe Raymond James is more favorable than Woodstock.

Profitability

This table compares Woodstock and Raymond James’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Woodstock N/A N/A N/A
Raymond James 11.46% 15.72% 2.65%

Volatility and Risk

Woodstock has a beta of -1.39, suggesting that its stock price is 239% less volatile than the S&P 500. Comparatively, Raymond James has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.

Valuation and Earnings

This table compares Woodstock and Raymond James’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Woodstock $6.86 million 0.07 -$300,000.00 N/A N/A
Raymond James $7.48 billion 1.47 $856.69 million $6.47 11.83

Raymond James has higher revenue and earnings than Woodstock.

Summary

Raymond James beats Woodstock on 13 of the 14 factors compared between the two stocks.

Woodstock Company Profile

Woodstock Holdings, Inc., through its subsidiary, provides securities brokerage and investment banking services in the United States. It offers full service commission and fee-based money management services to individual and institutional investors. The company sells stocks, mutual funds, bonds, managed accounts, and other investment advisory and financial planning products and services through a network of independent contractor registered representatives to retail clients; and variable annuities and life insurance products through independent contractors and broker network to retail clients and consumers. It also provides investment supervisory services; and planning and consulting services in various financial services areas, such as financial planning, tax planning, benefits consulting, corporate 401(k)s, and other types of financial structures. It was formerly known as Woodstock Financial Group, Inc. and changed its name to Woodstock Holdings, Inc. in January 2010. The company was founded in 1995 and is headquartered in Woodstock, Georgia.

Raymond James Company Profile

Raymond James Financial, Inc., a financial holding company, through its subsidiaries, engages in the underwriting, distribution, trading, and brokerage of equity and debt securities, and the sale of mutual funds and other investment products in the United States, Canada, Europe, and internationally. The company operates through Private Client Group, Capital Markets, Asset Management, RJ Bank, and Other segments. The Private Client Group segment provides securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance products to their individual clients; and borrowing and lending of securities to and from other broker-dealers, financial institutions, and other counterparties. The Capital Markets segment offers securities brokerage, trading, and research services to institutions with a focus on sale of the United States and Canadian equities and fixed income products; and manages and participates in underwritings, merger and acquisition services, and public finance activities. The Asset Management segment engages in the operations of Eagle, the Eagle Family of Funds, Cougar, the asset management operations of Raymond James & Associates, trust services of Raymond James Trust, and other fee-based asset management programs. The RJ Bank segment provides corporate loans, SBL, tax-exempt loans, and residential loans. The Other segment engages in private equity activities, including various direct and third party private equity investments; and private equity funds. Raymond James Financial, Inc. was founded in 1962 and is based in St. Petersburg, Florida.

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