Analyzing SBI (OTCMKTS:SBHGF) and Interactive Brokers Group (NASDAQ:IBKR)

Interactive Brokers Group (NASDAQ:IBKR) and SBI (OTCMKTS:SBHGF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Risk & Volatility

Interactive Brokers Group has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, SBI has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Profitability

This table compares Interactive Brokers Group and SBI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interactive Brokers Group	9.44%	5.12%	0.52%
SBI	16.99%	15.66%	0.87%

Institutional & Insider Ownership

23.8% of Interactive Brokers Group shares are held by institutional investors. 2.8% of Interactive Brokers Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Interactive Brokers Group and SBI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interactive Brokers Group	0	2	7	0	2.78
SBI	0	0	0	0	0.00

Interactive Brokers Group presently has a consensus price target of $76.39, indicating a potential upside of 19.94%. Given Interactive Brokers Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Interactive Brokers Group is more favorable than SBI.

Valuation & Earnings

This table compares Interactive Brokers Group and SBI”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interactive Brokers Group	$10.42 billion	10.36	$984.00 million	$2.21	28.82
SBI	$9.48 billion	0.62	$1.07 billion	$5.81	3.06

SBI has lower revenue, but higher earnings than Interactive Brokers Group. SBI is trading at a lower price-to-earnings ratio than Interactive Brokers Group, indicating that it is currently the more affordable of the two stocks.

Summary

Interactive Brokers Group beats SBI on 9 of the 14 factors compared between the two stocks.

About Interactive Brokers Group

Interactive Brokers Group, Inc. operates as an automated electronic broker worldwide. The company engages in the execution, clearance, and settlement of trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange traded funds (ETFs), precious metals, and cryptocurrencies. It also custodies and services accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. In addition, the company offers custody, prime brokerage, securities, and margin lending services. It serves institutional and individual customers through electronic exchanges and market centers. The company was founded in 1977 and is headquartered in Greenwich, Connecticut.

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.