Jefferies Financial Group (NYSE:JEF) and Sun Hung Kai and (OTCMKTS:SHGKY) Critical Contrast

Sun Hung Kai and (OTCMKTS:SHGKY) and Jefferies Financial Group (NYSE:JEF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares Sun Hung Kai and and Jefferies Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sun Hung Kai and	N/A	N/A	N/A
Jefferies Financial Group	6.61%	7.83%	1.15%

Risk & Volatility

Sun Hung Kai and has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Jefferies Financial Group has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Sun Hung Kai and and Jefferies Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sun Hung Kai and	0	0	0	0	0.00
Jefferies Financial Group	0	4	3	0	2.43

Jefferies Financial Group has a consensus target price of $58.14, suggesting a potential upside of 10.81%. Given Jefferies Financial Group’s stronger consensus rating and higher probable upside, analysts clearly believe Jefferies Financial Group is more favorable than Sun Hung Kai and.

Dividends

Sun Hung Kai and pays an annual dividend of $0.15 per share and has a dividend yield of 10.6%. Jefferies Financial Group pays an annual dividend of $1.60 per share and has a dividend yield of 3.0%. Jefferies Financial Group pays out 54.1% of its earnings in the form of a dividend. Jefferies Financial Group has increased its dividend for 2 consecutive years.

Valuation and Earnings

This table compares Sun Hung Kai and and Jefferies Financial Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sun Hung Kai and	$475.26 million	1.17	$204.40 million	N/A	N/A
Jefferies Financial Group	$10.82 billion	0.99	$710.47 million	$2.96	17.73

Jefferies Financial Group has higher revenue and earnings than Sun Hung Kai and.

Insider and Institutional Ownership

60.9% of Jefferies Financial Group shares are owned by institutional investors. 19.9% of Jefferies Financial Group shares are owned by 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

Jefferies Financial Group beats Sun Hung Kai and on 12 of the 15 factors compared between the two stocks.

About Sun Hung Kai and

Sun Hung Kai & Co. Limited, an investment holding company, provides financial services primarily in Hong Kong and the People's Republic of China. The company operates through Consumer Finance, Private Credit, Mortgage Loans, Investment Management, and Group Management and Support segments. It offers unsecured loan to individuals and businesses through branches and online platforms; and first mortgage and second mortgage loans to property owners, as well as customized financing solutions to property investors. The company also engages in the public markets, alternative, and real estate investment activities. In addition, it offers secretarial, financial consultancy, enterprise management, nominee, money lending, asset management, property investment, securities trading, marketing planning, and fund management services. Sun Hung Kai & Co. Limited was incorporated in 1969 and is headquartered in Causeway Bay, Hong Kong. Sun Hung Kai & Co. Limited is a subsidiary of AP Emerald Limited.

About Jefferies Financial Group

Jefferies Financial Group Inc. operates as an investment banking and capital markets firm in the Americas, Europe, the Middle East, and the Asia-Pacific. The company operates in two segments, Investment Banking and Capital Markets, and Asset Management. It provides investment banking, advisory services with respect to mergers or acquisitions, debt financing, restructurings or recapitalizations, and private capital advisory transactions; underwriting and placement services related to corporate debt, municipal bonds, mortgage-backed and asset-backed securities, equity and equity-linked securities, and loan syndication services; and corporate lending services. The company also offers financing, securities lending, and other prime brokerage services; equities research, sales, and trading services; wealth management services; and online foreign exchange trading services. In addition, it provides investment grade distressed debt securities, U.S. and European government and agency securities, municipal bonds, leveraged loans, emerging markets debt, and interest rate and credit index derivative products; and manages and offers services to a diverse group of alternative asset management platforms across a spectrum of 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 1962 and is headquartered in New York, New York.