Critical Analysis: Nomura (NMR) versus Its Competitors
Nomura (NYSE: NMR) is one of 31 public companies in the “Security brokers & dealers” industry, but how does it weigh in compared to its competitors? We will compare Nomura to related businesses based on the strength of its earnings, profitability, risk, valuation, institutional ownership, dividends and analyst recommendations.
Valuation & Earnings
This table compares Nomura and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Nomura||$12.98 billion||$2.23 billion||9.70|
|Nomura Competitors||$5.87 billion||$745.79 million||24.14|
Risk & Volatility
Nomura has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Nomura’s competitors have a beta of 8.84, meaning that their average stock price is 784% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Nomura and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
As a group, “Security brokers & dealers” companies have a potential upside of 0.19%. Given Nomura’s competitors higher probable upside, analysts clearly believe Nomura has less favorable growth aspects than its competitors.
Insider & Institutional Ownership
0.8% of Nomura shares are owned by institutional investors. Comparatively, 66.3% of shares of all “Security brokers & dealers” companies are owned by institutional investors. 21.4% of shares of all “Security brokers & dealers” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Nomura pays an annual dividend of $0.07 per share and has a dividend yield of 1.2%. Nomura pays out 11.5% of its earnings in the form of a dividend. As a group, “Security brokers & dealers” companies pay a dividend yield of 1.6% and pay out 35.0% of their earnings in the form of a dividend.
This table compares Nomura and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Nomura competitors beat Nomura on 8 of the 15 factors compared.
Nomura Company Profile
Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. It operates through three segments: Retail, Asset Management, and Wholesale. The Retail segment offers various financial products and investment services for individuals and corporations. As of March 31, 2017, this segment operated a network of 158 branches. The Asset Management segment is involved in the development and management of investment trusts, which offers low risk/low return products and high risk/high return products, as well as products for various investor needs; and provision of investment advisory services to public pension funds, private pension funds, governments and their agencies, central banks, and institutional investors. The Wholesale segment engages in the research, sale, trading, and market-making of fixed income and equity-related products. It is also involved in underwriting various securities and other financial instruments, which include various stocks, convertible and exchangeable securities, investment grade debts, sovereign and emerging market debts, high yield debt, 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, including mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions. In addition, this segment offers various financial instruments, such as equity securities, debt securities, investment trusts, and variable annuity insurance products for the short, medium, and long-term. 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 founded in 1925 and is headquartered in Tokyo, Japan.
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