Comparing Interactive Brokers Group (IBKR) and Credit Suisse Group (CS)

Interactive Brokers Group (NASDAQ: IBKR) and Credit Suisse Group (NYSE:CS) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

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This is a summary of current recommendations and price targets for Interactive Brokers Group and Credit Suisse Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interactive Brokers Group 1 2 3 0 2.33
Credit Suisse Group 1 1 9 0 2.73

Interactive Brokers Group currently has a consensus target price of $56.75, indicating a potential downside of 17.88%. Given Interactive Brokers Group’s higher possible upside, analysts plainly believe Interactive Brokers Group is more favorable than Credit Suisse Group.

Valuation and Earnings

This table compares Interactive Brokers Group and Credit Suisse Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Interactive Brokers Group $1.93 billion 14.77 $76.00 million $1.53 45.17
Credit Suisse Group $31.90 billion 1.29 -$999.02 million $0.54 29.93

Interactive Brokers Group has higher earnings, but lower revenue than Credit Suisse Group. Credit Suisse Group is trading at a lower price-to-earnings ratio than Interactive Brokers Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Interactive Brokers Group and Credit Suisse Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Interactive Brokers Group 3.94% 1.74% 0.18%
Credit Suisse Group -3.14% 3.24% 0.18%

Insider & Institutional Ownership

15.9% of Interactive Brokers Group shares are held by institutional investors. Comparatively, 3.0% of Credit Suisse Group shares are held by institutional investors. 2.0% of Interactive Brokers Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Interactive Brokers Group pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. Credit Suisse Group pays an annual dividend of $0.72 per share and has a dividend yield of 4.5%. Interactive Brokers Group pays out 26.1% of its earnings in the form of a dividend. Credit Suisse Group pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Interactive Brokers Group has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Credit Suisse Group has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Summary

Interactive Brokers Group beats Credit Suisse Group on 9 of the 15 factors compared between the two stocks.

Interactive Brokers Group Company Profile

Interactive Brokers Group, Inc. (IBG, Inc.) is a holding company. The Company is an automated global electronic broker and market maker specializing in routing orders, and executing and processing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on over 120 electronic exchanges and market centers around the world and offering custody, prime brokerage, securities and margin lending services to customers. It operates in two segments: electronic brokerage and market making. It conducts its electronic brokerage business through its Interactive Brokers (IB) subsidiaries. It conducts its market making business through its Timber Hill (TH) subsidiaries. In the United States, it conducts its business from Greenwich, Connecticut and Chicago, Illinois. Outside the United States, it conducts business in Canada, England, Switzerland, Liechtenstein, China (Hong Kong and Shanghai), India, Australia and Japan.

Credit Suisse Group Company Profile

Credit Suisse Group AG (Credit Suisse) is a financial services company. The Company’s segments include Swiss Universal Bank, International Wealth Management, Asia Pacific, Global Markets, Investment Banking & Capital Markets, Strategic Resolution Unit and Corporate Center. It offers a range of private banking and wealth management solutions to its clients in its Swiss Universal Bank, International Wealth Management and Asia Pacific divisions. It offers a range of investment advice and discretionary asset management services. It offers a range of investment services, including macroeconomic, equity, bond, commodity and foreign-exchange analysis, as well as research on the economy. Its investment advice covers a range of services from portfolio consulting to advising on individual investments. The Company offers its clients portfolio and risk management solutions, including managed investment products.

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