XP vs. RJF, HOOD, NMR, JEF, SEIC, SF, MKTX, FRHC, PIPR, and MS
Should you be buying XP stock or one of its competitors? The main competitors of XP include Raymond James (RJF), Robinhood Markets (HOOD), Nomura (NMR), Jefferies Financial Group (JEF), SEI Investments (SEIC), Stifel Financial (SF), MarketAxess (MKTX), Freedom (FRHC), Piper Sandler Companies (PIPR), and Morgan Stanley (MS). These companies are all part of the "security brokers & dealers" industry.
XP (NASDAQ:XP) and Raymond James (NYSE:RJF) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, community ranking, earnings, dividends, media sentiment, risk and analyst recommendations.
59.2% of XP shares are held by institutional investors. Comparatively, 83.8% of Raymond James shares are held by institutional investors. 9.7% of Raymond James shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
XP presently has a consensus price target of $27.17, suggesting a potential upside of 45.74%. Raymond James has a consensus price target of $126.22, suggesting a potential upside of 7.59%. Given XP's stronger consensus rating and higher possible upside, equities research analysts clearly believe XP is more favorable than Raymond James.
Raymond James received 622 more outperform votes than XP when rated by MarketBeat users. Likewise, 58.94% of users gave Raymond James an outperform vote while only 42.86% of users gave XP an outperform vote.
XP pays an annual dividend of $1.32 per share and has a dividend yield of 7.1%. Raymond James pays an annual dividend of $1.80 per share and has a dividend yield of 1.5%. XP pays out 86.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Raymond James pays out 21.8% of its earnings in the form of a dividend.
Raymond James has higher revenue and earnings than XP. XP is trading at a lower price-to-earnings ratio than Raymond James, indicating that it is currently the more affordable of the two stocks.
In the previous week, Raymond James had 5 more articles in the media than XP. MarketBeat recorded 6 mentions for Raymond James and 1 mentions for XP. Raymond James' average media sentiment score of 1.59 beat XP's score of 0.00 indicating that Raymond James is being referred to more favorably in the news media.
XP has a net margin of 26.20% compared to Raymond James' net margin of 12.72%. XP's return on equity of 21.15% beat Raymond James' return on equity.
XP has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Raymond James has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
Summary
Raymond James beats XP on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding XP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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