Reviewing FXCM (OTCMKTS:GLBR) and Nomura (NYSE:NMR)

FXCM (OTCMKTS:GLBR) and Nomura (NYSE:NMR) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

15.1% of Nomura shares are owned by institutional investors. 9.0% of FXCM shares are owned by company insiders. Comparatively, 0.0% of Nomura shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares FXCM and Nomura”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FXCM	N/A	N/A	N/A	N/A	N/A
Nomura	$31.11 billion	0.72	$2.25 billion	$0.83	9.11

Nomura has higher revenue and earnings than FXCM.

Analyst Recommendations

This is a summary of current recommendations and price targets for FXCM and Nomura, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FXCM	0	0	0	0	0.00
Nomura	0	2	0	0	2.00

Profitability

This table compares FXCM and Nomura’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FXCM	N/A	N/A	N/A
Nomura	8.06%	10.58%	0.65%

Volatility & Risk

FXCM has a beta of -1.74, indicating that its stock price is 274% less volatile than the S&P 500. Comparatively, Nomura has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Summary

Nomura beats FXCM on 7 of the 8 factors compared between the two stocks.

About FXCM

Global Brokerage, Inc., through its subsidiaries, provides online foreign exchange (FX) trading, contracts for difference trading, spread betting, and related services to retail and institutional customers worldwide. Its proprietary trading platform presents its FX customers with the price quotations on various currency pairs from a range of global banks, financial institutions, and market makers. The company also acts as a credit intermediary and simultaneously entering into trades with the customer and the FX market maker. It offers its customers access to over-the-counter FX markets. The company was formerly known as FXCM Inc. and changed its name to Global Brokerage, Inc. in February 2017. Global Brokerage, Inc. was incorporated in 2010 and is based in New York, New York. On March 23, 2023, an involuntary petition for liquidation under Chapter 7 was filed against Global Brokerage, Inc. in the U.S. Bankruptcy Court for the Southern District of New York. On May 19, 2023, the involuntary petition was approved by the Court.

About Nomura

Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. It operates through three segments: Retail, Investment Management, and Wholesale. The Retail segment offers various financial products and investment consultation services. The Investment Management segment engages in the management of funds, investment trusts, and other investment solutions; and provision of investment advisory, custodial, and administrative services. The Wholesale segment is involved in the research, sale, trading, agency execution, and market-making of fixed income and equity-related products. This segment also engages in underwriting various securities and other financial instruments, such as various classes of shares, convertible and exchangeable securities, investment grade and high yield debts, sovereign and emerging market debts, structured securities, and other securities; arranging private placements, as well as other capital raising activities; and the provision of financial advisory services on business transactions comprising mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions. The company was formerly known as The Nomura Securities Co., Ltd. and changed its name to Nomura Holdings, Inc. in October 2001. Nomura Holdings, Inc. was incorporated in 1925 and is headquartered in Tokyo, Japan.