Comparing StoneX Group (NASDAQ:SNEX) & SWK (NASDAQ:SWKH)

StoneX Group (NASDAQ:SNEX) and SWK (NASDAQ:SWKH) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

75.9% of StoneX Group shares are owned by institutional investors. Comparatively, 99.3% of SWK shares are owned by institutional investors. 11.7% of StoneX Group shares are owned by insiders. Comparatively, 1.3% of SWK shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares StoneX Group and SWK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StoneX Group	0.23%	16.20%	0.97%
SWK	39.00%	8.43%	7.38%

Risk and Volatility

StoneX Group has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, SWK has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.

Valuation and Earnings

This table compares StoneX Group and SWK”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StoneX Group	$99.89 billion	0.05	$260.80 million	$5.87	16.37
SWK	$44.99 million	4.35	$13.49 million	$1.42	11.35

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for StoneX Group and SWK, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StoneX Group	0	2	1	0	2.33
SWK	0	2	0	0	2.00

SWK has a consensus price target of $18.00, suggesting a potential upside of 11.66%. Given SWK’s higher probable upside, analysts clearly believe SWK is more favorable than StoneX Group.

Summary

StoneX Group beats SWK on 9 of the 14 factors compared between the two stocks.

About StoneX Group

StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. The company operates through Commercial, Institutional, Retail, and Global Payments segments. The Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The Institutional segment offers equity trading services to institutional clients; clearing and execution services in futures exchanges; brokerage foreign exchange services for the financial institutions and professional traders; and OTC products, as well as originates, structures, and places debt instruments in capital markets. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies, as well as engages in asset management business. The Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management services, as well as offers physical gold and other precious metals in various forms and denominations through Stonexbullion.com. The Global Payments segment provides customized payment, technology, and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and pricing and payments services. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.

About SWK

SWK Holdings Corporation, offers specialty finance and asset management services in the United States. It operates in two segments, Finance Receivables and Pharmaceutical Development. The Finance Receivables segment provides customized financing solutions to a range of life science companies, including companies in the biotechnology, medical device, medical diagnostics and related tools, animal health, and pharmaceutical industries, as well as institutions and inventors. This segment also offers non-discretionary investment advisory services to institutional clients in separately managed accounts to invest in life science finance. The Pharmaceutical Development segment provides customers pharmaceutical development, formulation, and manufacturing services, as well as formulation solutions built around its proprietary oral drug delivery technologies, the Peptelligence platform. It also offers intellectual property licensing business. The company was formerly known as Kana Software, Inc. and changed its name to SWK Holdings Corporation in December 2009. SWK Holdings Corporation was incorporated in 1996 and is headquartered in Dallas, Texas.