Analyzing Siebert Financial (SIEB) and BlackRock (BLK)

BlackRock (NYSE:BLK) and Siebert Financial (NASDAQ:SIEB) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Analyst Ratings

This is a summary of current ratings and target prices for BlackRock and Siebert Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackRock 0 2 11 0 2.85
Siebert Financial 0 0 0 0 N/A

BlackRock currently has a consensus price target of $502.34, indicating a potential upside of 11.17%. Given BlackRock’s higher possible upside, research analysts plainly believe BlackRock is more favorable than Siebert Financial.

Risk and Volatility

BlackRock has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Siebert Financial has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500.

Dividends

BlackRock pays an annual dividend of $13.20 per share and has a dividend yield of 2.9%. Siebert Financial does not pay a dividend. BlackRock pays out 49.0% of its earnings in the form of a dividend. BlackRock has raised its dividend for 9 consecutive years.

Profitability

This table compares BlackRock and Siebert Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BlackRock 30.32% 13.51% 2.34%
Siebert Financial 39.83% 107.30% 93.82%

Institutional and Insider Ownership

83.6% of BlackRock shares are owned by institutional investors. Comparatively, 4.0% of Siebert Financial shares are owned by institutional investors. 1.8% of BlackRock shares are owned by insiders. Comparatively, 67.9% of Siebert Financial shares 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.

Valuation & Earnings

This table compares BlackRock and Siebert Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BlackRock $14.20 billion 5.03 $4.31 billion $26.93 16.78
Siebert Financial $30.04 million 10.20 $11.96 million N/A N/A

BlackRock has higher revenue and earnings than Siebert Financial.

Summary

BlackRock beats Siebert Financial on 8 of the 15 factors compared between the two stocks.

BlackRock Company Profile

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California.

Siebert Financial Company Profile

Siebert Financial Corp., through its subsidiaries, engages in the retail discount brokerage and investment advisory businesses. The company offers online and traditional brokerage, and related services to retail investors through a broker on the telephone, a wireless device, or through the Internet; various value added services, such as access to account information; independent retail execution services; and retail customer services. It also acts as an agent on various transactions for its self-directed retirement accounts, as well as lends customers a portion of the market value of certain securities held in the customer's account. In addition, the company provides custodial services; and data technology platform that offers services, such as email and messaging, market data systems and third party trading systems, business productivity tools, and customer relationship management systems. It maintains 10 retail discount brokerage offices. The company was founded in 1886 and is headquartered in New York, New York.

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