Noah (NYSE:NOAH – Get Free Report) and Binah Capital Group (NASDAQ:BCG – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.
Risk & Volatility
Noah has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.
Profitability
This table compares Noah and Binah Capital Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Noah | 25.99% | 7.23% | 6.12% |
| Binah Capital Group | 0.58% | 509.27% | 1.55% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Noah | 1 | 2 | 1 | 0 | 2.00 |
| Binah Capital Group | 1 | 0 | 0 | 0 | 1.00 |
Noah presently has a consensus target price of $10.75, suggesting a potential downside of 4.22%. Given Noah’s stronger consensus rating and higher possible upside, analysts plainly believe Noah is more favorable than Binah Capital Group.
Insider and Institutional Ownership
42.7% of Noah shares are owned by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are owned by institutional investors. 47.2% of Noah shares are owned by insiders. Comparatively, 1.9% of Binah Capital Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Noah and Binah Capital Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Noah | $2.58 billion | 0.29 | $65.14 million | $1.29 | 8.70 |
| Binah Capital Group | $168.90 million | 0.25 | -$4.56 million | $0.03 | 86.00 |
Noah has higher revenue and earnings than Binah Capital Group. Noah is trading at a lower price-to-earnings ratio than Binah Capital Group, indicating that it is currently the more affordable of the two stocks.
Summary
Noah beats Binah Capital Group on 12 of the 14 factors compared between the two stocks.
About Noah
Noah Holdings Limited, together with its subsidiaries, operates as a wealth and asset management service provider with the focus on investment and asset allocation services for high net worth individuals and enterprises in Mainland of China, Hong Kong, and internationally. It operates through three segments: Wealth Management, Asset Management, and Other Services. The company offers investment products, including domestic and overseas mutual fund products, private secondary products, and other products; customized value-added financial services, such as investor education and trust services, as well as insurance brokerage services; and insurance products. It also provides onshore and offshore private equity, real estate, public securities, multi-strategy, and other investment products, as well as lending services. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.
About Binah Capital Group
Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.
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