Reviewing ONEX (OTCMKTS:ONEXF) & Associated Capital Group (NYSE:AC)

ONEX (OTCMKTS:ONEXF) and Associated Capital Group (NYSE:AC) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Profitability

This table compares ONEX and Associated Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ONEX	61.92%	6.12%	3.85%
Associated Capital Group	451.70%	5.98%	5.65%

Valuation & Earnings

This table compares ONEX and Associated Capital Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ONEX	$649.00 million	9.70	$303.00 million	$7.32	12.21
Associated Capital Group	$11.91 million	54.93	$44.33 million	$2.53	12.25

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

Risk & Volatility

ONEX has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Associated Capital Group has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Institutional & Insider Ownership

0.7% of ONEX shares are held by institutional investors. Comparatively, 8.1% of Associated Capital Group shares are held by institutional investors. 88.7% of Associated Capital Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

ONEX pays an annual dividend of $0.29 per share and has a dividend yield of 0.3%. Associated Capital Group pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. ONEX pays out 4.0% of its earnings in the form of a dividend. Associated Capital Group pays out 7.9% 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 breakdown of recent ratings and price targets for ONEX and Associated Capital Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ONEX	0	0	2	0	3.00
Associated Capital Group	0	0	0	0	0.00

Summary

ONEX beats Associated Capital Group on 8 of the 15 factors compared between the two stocks.

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.

About Associated Capital Group

Associated Capital Group, Inc., together with its subsidiaries, provides investment advisory services in the United States. The company offers alternative investment management services; and operates a direct investment business. It also invests in new and existing businesses. The company was founded in 1976 and is headquartered in Greenwich, Connecticut. Associated Capital Group, Inc. operates as a subsidiary of GGCP Holdings LLC.