Head-To-Head Survey: Futu (NASDAQ:FUTU) versus GAMCO Investors (NYSE:GAMI)

Futu (NASDAQ:FUTU – Get Rating) and GAMCO Investors (NYSE:GAMI – Get Rating) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Futu and GAMCO Investors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Futu	2	1	3	0	2.17
GAMCO Investors	0	0	0	0	N/A

Futu currently has a consensus price target of $52.52, indicating a potential upside of 16.52%. Given Futu’s higher possible upside, analysts plainly believe Futu is more favorable than GAMCO Investors.

Valuation and Earnings

This table compares Futu and GAMCO Investors’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Futu	$912.27 million	7.43	$360.30 million	$2.16	20.87
GAMCO Investors	$258.75 million	1.87	$65.56 million	$2.51	7.45

Futu has higher revenue and earnings than GAMCO Investors. GAMCO Investors is trading at a lower price-to-earnings ratio than Futu, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Futu has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, GAMCO Investors has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Insider and Institutional Ownership

19.9% of Futu shares are owned by institutional investors. Comparatively, 30.5% of GAMCO Investors shares are owned by institutional investors. 35.2% of Futu shares are owned by insiders. Comparatively, 81.2% of GAMCO Investors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Futu and GAMCO Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Futu	35.56%	12.17%	2.38%
GAMCO Investors	25.34%	57.64%	28.82%

Summary

Futu beats GAMCO Investors on 7 of the 13 factors compared between the two stocks.

About Futu

(Get Rating)

Futu Holdings Ltd. is an advanced technology company, which engages in online brokerage and wealth management services. It provides investing services through its proprietary digital platforms, Futubull and moomoo that allows investors to trade securities and invest in fund products. The firm’s fee-generating services include trade execution, as well as margin financing and securities lending, which allow its clients to trade securities, such as stocks, ETFs, warrants, options and futures, across different markets. The company was founded by Leaf Hua Li in December 2007 and is headquartered in Hong Kong.

About GAMCO Investors

(Get Rating)

GAMCO Investors, Inc. operates as a holding company, which engages in the provision of investment advisory and asset management services. It offers investment advisory principally through Gabelli Funds and GAMCO Asset, which manages separate accounts for high net worth individuals, institutions, and qualified pension plans, and through its role as advisor to a family of mutual funds. The company was founded by Mario J. Gabelli in 1976 and is headquartered in Rye, NY.