OTC Markets Group (OTCMKTS: OTCM) is one of 23 public companies in the “Security & commodity brokers, dealers, exchanges & services” industry, but how does it compare to its rivals? We will compare OTC Markets Group to related businesses based on the strength of its analyst recommendations, risk, profitability, earnings, valuation, dividends and institutional ownership.
Valuation & Earnings
This table compares OTC Markets Group and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|OTC Markets Group||$60.35 million||$14.94 million||27.77|
|OTC Markets Group Competitors||$8.04 billion||$638.76 million||28.03|
Insider and Institutional Ownership
0.1% of OTC Markets Group shares are held by institutional investors. Comparatively, 72.6% of shares of all “Security & commodity brokers, dealers, exchanges & services” companies are held by institutional investors. 6.1% of shares of all “Security & commodity brokers, dealers, exchanges & services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations and price targets for OTC Markets Group and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|OTC Markets Group||0||0||0||0||N/A|
|OTC Markets Group Competitors||193||1001||1074||29||2.41|
As a group, “Security & commodity brokers, dealers, exchanges & services” companies have a potential upside of 0.52%. Given OTC Markets Group’s rivals higher probable upside, analysts clearly believe OTC Markets Group has less favorable growth aspects than its rivals.
This table compares OTC Markets Group and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|OTC Markets Group||24.71%||70.25%||27.16%|
|OTC Markets Group Competitors||15.87%||20.53%||7.03%|
Risk & Volatility
OTC Markets Group has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, OTC Markets Group’s rivals have a beta of 0.46, suggesting that their average stock price is 54% less volatile than the S&P 500.
OTC Markets Group pays an annual dividend of $0.60 per share and has a dividend yield of 1.7%. OTC Markets Group pays out 48.0% of its earnings in the form of a dividend. As a group, “Security & commodity brokers, dealers, exchanges & services” companies pay a dividend yield of 1.5% and pay out 36.0% of their earnings in the form of a dividend.
OTC Markets Group rivals beat OTC Markets Group on 7 of the 12 factors compared.
OTC Markets Group Company Profile
OTC Markets Group Inc. engages in the financial market business in the United States and internationally. It offers OTC Link Alternative Trading System, which provides a suite of quotation and trade-messaging services for broker-dealers to control trades and choice of counterparties for execution and attracting order flow, as well as complying with Financial Industry Regulatory Authority and Securities and Exchange Commission regulations; and OTC Link Electronic Communication Networks (ECN) that acts as an agency intermediary in relation to various transactions executed on the ECN's platform. The company also provides enterprise and market data licenses through direct and extranet connectivity, third party market data redistributors, and order management systems to investors, traders, institutions, and regulators. In addition, it offers a suite of market trading services to companies, such as the OTC Disclosure & News Service for posting financial reports, disclosure documents, and news releases; Real-Time Level 2 Quote Display, a service that companies sponsor to provide their investors with access to real-time level 2 quotes available on otcmarkets.com and the company's Website; and Blue Sky Monitoring Service for analysis, review, and guidance about a company's compliance with the United States securities laws, as well as operates the OTCQX Best Market and OTCQB Venture Market. Further, it offers software, and risk and performance analytics tools for the banking and industries. The company has a strategic alliance with North Capital Investment Technology Inc. to provide companies with access to a technology platform to raise capital online. The company was formerly known as Pink OTC Markets Inc. and changed its name to OTC Markets Group Inc. in January 2011. OTC Markets Group Inc. was founded in 1904 and is headquartered in New York, New York.
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