Yintech Investment Holdings Limited (NASDAQ: YIN) and MarketAxess Holdings (NASDAQ:MKTX) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Dividends

Yintech Investment Holdings Limited pays an annual dividend of $0.80 per share and has a dividend yield of 6.6%. MarketAxess Holdings pays an annual dividend of $1.32 per share and has a dividend yield of 0.8%. Yintech Investment Holdings Limited pays out 37.2% of its earnings in the form of a dividend. MarketAxess Holdings pays out 33.9% 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.

Volatility & Risk

Yintech Investment Holdings Limited has a beta of -0.74, suggesting that its share price is 174% less volatile than the S&P 500. Comparatively, MarketAxess Holdings has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Earnings & Valuation

This table compares Yintech Investment Holdings Limited and MarketAxess Holdings’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Yintech Investment Holdings Limited $498.41 million 1.72 $150.76 million $2.15 5.68
MarketAxess Holdings $385.91 million 16.92 $219.16 million $3.89 44.73

MarketAxess Holdings has higher revenue, but lower earnings than Yintech Investment Holdings Limited. Yintech Investment Holdings Limited is trading at a lower price-to-earnings ratio than MarketAxess Holdings, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Yintech Investment Holdings Limited and MarketAxess Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yintech Investment Holdings Limited 0 0 1 0 3.00
MarketAxess Holdings 0 2 2 1 2.80

Yintech Investment Holdings Limited presently has a consensus price target of $15.00, suggesting a potential upside of 22.85%. MarketAxess Holdings has a consensus price target of $192.40, suggesting a potential upside of 10.57%. Given Yintech Investment Holdings Limited’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Yintech Investment Holdings Limited is more favorable than MarketAxess Holdings.

Profitability

This table compares Yintech Investment Holdings Limited and MarketAxess Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yintech Investment Holdings Limited 30.09% 33.52% 28.50%
MarketAxess Holdings 37.67% 30.12% 27.26%

Institutional & Insider Ownership

1.6% of Yintech Investment Holdings Limited shares are owned by institutional investors. Comparatively, 90.2% of MarketAxess Holdings shares are owned by institutional investors. 4.0% of MarketAxess Holdings shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

MarketAxess Holdings beats Yintech Investment Holdings Limited on 11 of the 17 factors compared between the two stocks.

About Yintech Investment Holdings Limited

Yintech Investment Holdings Limited is an online provider of spot commodity trading services in China. The Company facilitates the trading by individual customers of silver, gold, and other precious metals and commodities on the Shanghai Gold Exchange, the Tianjin Precious Metals Exchange and the Guangdong Precious Metals Exchange. The Company provides its customers with various services, such as account opening, investor education, market information, research, live discussion boards and real-time customer support. On the Tianjin Precious Metals Exchange and the Guangdong Precious Metals Exchange, the Company serves as counterparty to its customers’ trades. On the Shanghai Gold Exchange, the Company serves as an agent and does not hold principal positions. The Company’s services include investor education, market information provision and research. Its research services include research reports, online lectures, live market commentaries and quantitative analysis.

About MarketAxess Holdings

MarketAxess Holdings Inc. operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments using its trading technology. Institutional investor and broker-dealer firms are users of trading platform, accessing global liquidity in the United States corporate bonds, emerging markets and high-yield bonds, European bonds, the United States agency bonds, municipal bonds, credit default swaps and other fixed-income securities. Through Open Trading protocols, it executes trades in certain bonds between and among institutional investor and broker-dealer clients in a trading environment on a matched principal basis. It offers trading-related products and services, including market data to assist clients with trading decisions; connectivity solutions that facilitate straight-through processing; technology services to optimize trading environments, and execution services for exchange-traded fund managers.

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