Contrasting Noah (NYSE:NOAH) and ONEX (OTCMKTS:ONEXF)

Noah (NYSE:NOAH) and ONEX (OTCMKTS:ONEXF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Earnings & Valuation

This table compares Noah and ONEX”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Noah	$356.33 million	2.19	$65.14 million	$0.97	12.17
ONEX	$649.00 million	9.29	$303.00 million	$7.32	11.70

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

Institutional & Insider Ownership

42.7% of Noah shares are held by institutional investors. Comparatively, 0.7% of ONEX shares are held by institutional investors. 47.2% of Noah shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Noah pays an annual dividend of $0.56 per share and has a dividend yield of 4.7%. ONEX pays an annual dividend of $0.29 per share and has a dividend yield of 0.3%. Noah pays out 57.7% of its earnings in the form of a dividend. ONEX pays out 4.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a summary of current ratings and price targets for Noah and ONEX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Noah	0	2	1	0	2.33
ONEX	0	0	2	0	3.00

Noah presently has a consensus target price of $12.00, indicating a potential upside of 1.68%. Given Noah’s higher probable upside, analysts clearly believe Noah is more favorable than ONEX.

Risk and Volatility

Noah has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, ONEX has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Profitability

This table compares Noah and ONEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Noah	22.17%	6.40%	5.45%
ONEX	61.92%	6.14%	3.86%

Summary

ONEX beats Noah on 10 of the 16 factors compared between the two stocks.

About Noah

Noah Holdings Limited, together with its subsidiaries, operates as a wealth and asset management service provider with the focus on investment and asset allocation services for high net worth individuals and enterprises in Mainland of China, Hong Kong, and internationally. It operates through three segments: Wealth Management, Asset Management, and Other Services. The company offers investment products, including domestic and overseas mutual fund products, private secondary products, and other products; customized value-added financial services, such as investor education and trust services, as well as insurance brokerage services; and insurance products. It also provides onshore and offshore private equity, real estate, public securities, multi-strategy, and other investment products, as well as lending services. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

About ONEX

Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions. The firm makes investments in buyouts, large- middle market, large-cap, mid-cap, and small-cap market and distressed companies. It also invests in recapitalization, growth capital, corporate carve-outs of subsidiaries and mission-critical supply divisions from multinational corporations, operational restructurings of undervalued businesses, and builds up. The firm seeks to invest in technology, electronics manufacturing services, industrial, aerospace, healthcare, retail, restaurants, industrials products, customer care services, metal services, building products, entertainment, gaming, cabinetry products, commercial vehicles, commercial and investment banking, financial services, commercial and multi-unit residential real estate. It invests in global businesses headquartered in North America, including United States and Canada, or Europe. The firm seeks to invest between $125 million and $1 billion in companies that have minimum revenues of $300 million. It does not consider size if the company is in an industry in which the firm already has presence. The firm seeks to make direct as well as co-investments through managed private equity, real estate and credit funds. It seeks to acquire a control position in its portfolio companies. Onex Corporation was founded in 1984 and is based in Toronto, Canada with additional offices in New York, New York; Englewood Cliffs, New Jersey; Boston, Massachusetts and London, United Kingdom.