TD Ameritrade Holding Corporation (NASDAQ: AMTD) and Moelis & (NYSE:MC) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.
TD Ameritrade Holding Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.5%. Moelis & pays an annual dividend of $1.48 per share and has a dividend yield of 3.5%. TD Ameritrade Holding Corporation pays out 45.0% of its earnings in the form of a dividend. Moelis & pays out 74.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TD Ameritrade Holding Corporation has increased its dividend for 2 consecutive years.
Insider & Institutional Ownership
93.5% of TD Ameritrade Holding Corporation shares are held by institutional investors. Comparatively, 90.8% of Moelis & shares are held by institutional investors. 0.4% of TD Ameritrade Holding Corporation shares are held by company insiders. Comparatively, 52.6% of Moelis & shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares TD Ameritrade Holding Corporation and Moelis &’s top-line revenue, earnings per share and valuation.
TD Ameritrade Holding Corporation has higher revenue and earnings than Moelis &. Moelis & is trading at a lower price-to-earnings ratio than TD Ameritrade Holding Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
TD Ameritrade Holding Corporation has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Moelis & has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500.
This table compares TD Ameritrade Holding Corporation and Moelis &’s net margins, return on equity and return on assets.
This is a summary of current ratings and recommmendations for TD Ameritrade Holding Corporation and Moelis &, as provided by MarketBeat.
TD Ameritrade Holding Corporation presently has a consensus price target of $47.77, suggesting a potential downside of 0.73%. Moelis & has a consensus price target of $37.57, suggesting a potential downside of 10.86%. Given TD Ameritrade Holding Corporation’s higher possible upside, equities research analysts plainly believe TD Ameritrade Holding Corporation is more favorable than Moelis &.
TD Ameritrade Holding Corporation beats Moelis & on 10 of the 17 factors compared between the two stocks.
About TD Ameritrade Holding Corporation
TD Ameritrade Holding Corporation is a provider of securities brokerage services and related technology-based financial services. The Company provides its services to retail investors, traders and independent registered investment advisors (RIAs). The Company provides its services through the Internet, a national branch network and relationships with RIAs. The Company’s products and services include common and preferred stock, exchange-traded funds, options, futures, foreign exchange, mutual funds, fixed income, new and secondary issue securities, margin lending, cash management services and annuities. The Company uses its platform to offer brokerage services to retail investors and investment advisors. In addition, it also offers various products and services to retail clients, such as touch-tone trading, trading over the Internet, real-time quotes, extended trading hours and direct access to market destinations.
About Moelis &
Moelis & Company is an investment banking advisory company. The Company provides strategic and financial advice to a client base, including corporations, governments and financial sponsors. The Company offers financial advisory services across various industry sectors. It advices its clients on decisions, including mergers and acquisitions (M&A), recapitalizations and restructurings, and other corporate finance matters. With 17 offices located in North and South America, Europe, the Middle East, Asia and Australia, the Company provided information flow and cross-border solutions as of December 31, 2016. The Company offers advisory services in all industries, including consumer, retail and restaurants; energy, power and infrastructure; financial institutions; financial sponsors; general industrials; healthcare; real estate, gaming, lodging and leisure, and technology, media and telecommunications. It advises clients on all aspects of public and private debt and equity transactions.