SBI (OTCMKTS:SBHGF) vs. Stifel Financial (NYSE:SF) Financial Analysis

SBI (OTCMKTS:SBHGF) and Stifel Financial (NYSE:SF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for SBI and Stifel Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBI	0	1	0	0	2.00
Stifel Financial	0	4	6	0	2.60

Stifel Financial has a consensus target price of $91.15, indicating a potential upside of 23.45%. Given Stifel Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Stifel Financial is more favorable than SBI.

Profitability

This table compares SBI and Stifel Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SBI	16.99%	15.66%	0.87%
Stifel Financial	15.34%	18.76%	2.33%

Valuation & Earnings

This table compares SBI and Stifel Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBI	$12.60 billion	0.46	$2.82 billion	$5.81	3.00
Stifel Financial	$5.53 billion	2.05	$683.78 million	$5.14	14.36

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

Risk & Volatility

SBI has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Stifel Financial has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Institutional and Insider Ownership

82.0% of Stifel Financial shares are held by institutional investors. 3.4% of Stifel Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Stifel Financial beats SBI on 10 of the 14 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 Stifel Financial

Stifel Financial Corp., a financial services and bank holding company, provides retail and institutional wealth management, and investment banking services to individual investors, corporations, municipalities, and institutions in the United States and internationally. It operates in three segments: Global Wealth Management, Institutional Group, and Other. The company provides private client services, including securities transaction and financial planning services; institutional equity and fixed income sales, trading and research, and municipal finance services; investment banking services, such as mergers and acquisitions, public offerings, and private placements; and retail and commercial banking services comprising personal and commercial lending programs, as well as deposit accounts. It participates in and manages underwritings for corporate and public finance; and offers financial advisory and securities brokerage services. The company was founded in 1890 and is headquartered in Saint Louis, Missouri.