Comparing SBI (OTCMKTS:SBHGF) & Moelis & Company (NYSE:MC)

SBI (OTCMKTS:SBHGF) and Moelis & Company (NYSE:MC) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares SBI and Moelis & Company’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SBI	14.51%	12.48%	0.75%
Moelis & Company	15.98%	47.11%	19.68%

Volatility and Risk

SBI has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Moelis & Company has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500.

Insider and Institutional Ownership

91.5% of Moelis & Company shares are owned by institutional investors. 6.4% of Moelis & Company shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares SBI and Moelis & Company”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBI	$9.48 billion	0.66	$1.07 billion	$5.81	3.55
Moelis & Company	$1.47 billion	3.39	$136.02 million	$2.99	21.23

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

Analyst Ratings

This is a summary of current ratings and target prices for SBI and Moelis & Company, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBI	0	0	0	0	0.00
Moelis & Company	0	7	3	1	2.45

Moelis & Company has a consensus price target of $71.57, indicating a potential upside of 12.74%. Given Moelis & Company’s stronger consensus rating and higher probable upside, analysts clearly believe Moelis & Company is more favorable than SBI.

Summary

Moelis & Company beats SBI on 12 of the 15 factors compared between the two stocks.

About SBI

SBI Holdings, Inc. engages in the online securities and investment businesses. It operates through five business segments: Financial Services Business, Asset Management Business, Investment Business, Crypto-Asset Business, and Non-financial Business segments. The Financial Services Business segment consists of a range of finance-related business, including securities brokerage business; banking services business; and life, property, and casualty insurance business. The Asset Management Business segment includes setting, solicitation, and management of investment trust; investment advice; and financial products information. The Investment Business segment includes fund management and investment in Internet technology, fintech, blockchain, finance, and biotechnology-related venture companies; private equity; and funds management businesses. The Crypto-asset Business segment provides crypto-asset exchange and trading services. The Non-Financial Business segment consists of biotechnology; development and distribution of pharmaceutical products, health foods, and cosmetics with 5-aminolevulinic acid; research and development of antibody drugs and nucleic acid medicine in the field of cancer and immunology; the digitization of medical and health information; provision of solutions and services that promote the use of medical big data, medical finance; business working on advanced fields related to Web 3.0; and renewable energy business. The company is also involved in the real estate secured loans, online mobile game, and e-sports related businesses. In addition, it operates and develops cybersecurity systems; exports used cars; offers back-office support services; and develops, operates, manages, and invests in real estate properties. The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan.

About Moelis & Company

Moelis & Co. operates as a holding company. It engages in the provision of financial advisory, capital raising and asset management services to a client base including corporations, governments, sovereign wealth funds and financial sponsors. The firm focuses on clients including large public multinational corporations, middle market private companies, financial sponsors, entrepreneurs and governments. The company was founded by Kenneth David Moelis, Navid Mahmoodzadegan, Jeffrey Raich and Elizabeth Ann Crain in July 2007 and is headquartered in New York, NY.