Virtu Financial (NASDAQ:VIRT – Get Free Report) and FlexShopper (NASDAQ:FPAY – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.
Institutional & Insider Ownership
45.8% of Virtu Financial shares are held by institutional investors. Comparatively, 19.4% of FlexShopper shares are held by institutional investors. 47.2% of Virtu Financial shares are held by company insiders. Comparatively, 30.2% of FlexShopper shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and price targets for Virtu Financial and FlexShopper, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Virtu Financial | 1 | 4 | 2 | 0 | 2.14 |
| FlexShopper | 1 | 0 | 1 | 0 | 2.00 |
Profitability
This table compares Virtu Financial and FlexShopper’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Virtu Financial | 10.43% | 32.08% | 3.09% |
| FlexShopper | N/A | N/A | N/A |
Risk and Volatility
Virtu Financial has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, FlexShopper has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.
Valuation and Earnings
This table compares Virtu Financial and FlexShopper”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Virtu Financial | $3.63 billion | 1.75 | $276.42 million | $5.13 | 8.08 |
| FlexShopper | $139.80 million | 0.00 | -$180,000.00 | ($0.23) | N/A |
Virtu Financial has higher revenue and earnings than FlexShopper. FlexShopper is trading at a lower price-to-earnings ratio than Virtu Financial, indicating that it is currently the more affordable of the two stocks.
Summary
Virtu Financial beats FlexShopper on 12 of the 13 factors compared between the two stocks.
About Virtu Financial
Virtu Financial, Inc. operates as a financial services company in the United States, Asia Pacific, Canada, EMEA, Ireland, and internationally. The company operates through two segments, Market Making and Execution Services. Its product includes offerings in execution, liquidity sourcing, analytics and broker-neutral, capital markets, and multi-dealer platforms in workflow technology. The company's product allow its clients to trade on various venues across 50 countries and in various asset classes, including global equities, ETFs, options, foreign exchange, futures, fixed income, cryptocurrencies, and myriad other commodities. Its multi-asset analytics platform provides a range of pre- and post-trade services, data products, and compliance tools for clients to invest, trade, and manage risk across global markets. The company was founded in 2008 and is headquartered in New York, New York.
About FlexShopper
FlexShopper, Inc., a financial technology company, operates an e-commerce marketplace to shop electronics, home furnishings, and other durable goods on a lease-to-own (LTO) basis. The company offers consumer electronics; home appliances; computers, such as tablets and wearables; smartphones; tires; and jewelry and furniture, including accessories. It also provides payment options to consumers. The company offers its products under the LG, Samsung, Sony, TCL, Frigidaire, General Electric, Whirlpool, Apple, Asus, Dell, Hewlett Packard, Toshiba, Resident, Sealy, and Ashley brands. The company was formerly known as Anchor Funding Services, Inc. and changed its name to FlexShopper, Inc. in October 2013. FlexShopper, Inc. was founded in 2003 and is headquartered in Boca Raton, Florida.
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