Jefferies Financial Group (NYSE: JEF) is one of 34 publicly-traded companies in the “Security brokers & dealers” industry, but how does it compare to its competitors? We will compare Jefferies Financial Group to similar companies based on the strength of its profitability, earnings, risk, valuation, institutional ownership, analyst recommendations and dividends.
Insider and Institutional Ownership
80.2% of Jefferies Financial Group shares are held by institutional investors. Comparatively, 64.0% of shares of all “Security brokers & dealers” companies are held by institutional investors. 10.0% of Jefferies Financial Group shares are held by insiders. Comparatively, 21.1% of shares of all “Security brokers & dealers” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Jefferies Financial Group and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jefferies Financial Group||10.07%||6.70%||1.44%|
|Jefferies Financial Group Competitors||10.19%||-74.13%||8.62%|
Jefferies Financial Group pays an annual dividend of $0.50 per share and has a dividend yield of 2.7%. Jefferies Financial Group pays out 61.7% of its earnings in the form of a dividend. As a group, “Security brokers & dealers” companies pay a dividend yield of 2.0% and pay out 30.1% of their earnings in the form of a dividend.
This is a summary of current ratings and recommmendations for Jefferies Financial Group and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jefferies Financial Group||0||0||1||0||3.00|
|Jefferies Financial Group Competitors||498||1757||1715||85||2.34|
Jefferies Financial Group currently has a consensus target price of $29.50, suggesting a potential upside of 59.20%. As a group, “Security brokers & dealers” companies have a potential upside of 10.02%. Given Jefferies Financial Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Jefferies Financial Group is more favorable than its competitors.
Risk and Volatility
Jefferies Financial Group has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Jefferies Financial Group’s competitors have a beta of 1.05, indicating that their average share price is 5% more volatile than the S&P 500.
Earnings and Valuation
This table compares Jefferies Financial Group and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Jefferies Financial Group||$5.01 billion||$1.03 billion||22.88|
|Jefferies Financial Group Competitors||$6.39 billion||$1.12 billion||14.78|
Jefferies Financial Group’s competitors have higher revenue and earnings than Jefferies Financial Group. Jefferies Financial Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Jefferies Financial Group beats its competitors on 8 of the 15 factors compared.
About Jefferies Financial Group
Jefferies Financial Group Inc., a financial services company, engages in investment banking and capital markets, asset management, and direct investing businesses in the Americas, Europe, and Asia. the company also offers equities research, sales, and trading services; equity finance services comprising financing, securities lending, and other prime brokerage services; and wealth management services to high net worth individuals, their families and businesses, private equity and venture funds, and small institutions. In addition, it provides fixed income sales and trading services for investment grade corporate bonds, U.S. and European government and agency securities, municipal bonds, mortgage- and asset-backed securities, leveraged loans, consumer loans, securities, markets debt, interest rate, and credit derivative products, as well as foreign exchange trade execution and securitization capabilities, as well as manages, invests in, and provides services to a group of alternative asset management platforms in investment strategies and asset classes. The company was formerly known as Leucadia National Corporation and changed its name to Jefferies Financial Group Inc. in May 2018. Jefferies Financial Group Inc. was founded in 1968 and is headquartered in New York, New York.
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