XP vs. JEF, SEIC, HOOD, SF, MKTX, NMR, FRHC, PIPR, VIRT, and RJF
Should you be buying XP stock or one of its competitors? The main competitors of XP include Jefferies Financial Group (JEF), SEI Investments (SEIC), Robinhood Markets (HOOD), Stifel Financial (SF), MarketAxess (MKTX), Nomura (NMR), Freedom (FRHC), Piper Sandler Companies (PIPR), Virtu Financial (VIRT), and Raymond James (RJF). These companies are all part of the "security brokers & dealers" industry.
Jefferies Financial Group (NYSE:JEF) and XP (NASDAQ:XP) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, community ranking, dividends, valuation, media sentiment, analyst recommendations and institutional ownership.
XP has a net margin of 26.25% compared to XP's net margin of 5.90%. Jefferies Financial Group's return on equity of 20.88% beat XP's return on equity.
Jefferies Financial Group pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. XP pays an annual dividend of $1.32 per share and has a dividend yield of 6.1%. Jefferies Financial Group pays out 98.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. XP pays out 92.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. XP is clearly the better dividend stock, given its higher yield and lower payout ratio.
Jefferies Financial Group received 480 more outperform votes than XP when rated by MarketBeat users. Likewise, 53.71% of users gave Jefferies Financial Group an outperform vote while only 41.67% of users gave XP an outperform vote.
XP has lower revenue, but higher earnings than Jefferies Financial Group. XP is trading at a lower price-to-earnings ratio than Jefferies Financial Group, indicating that it is currently the more affordable of the two stocks.
In the previous week, Jefferies Financial Group had 14 more articles in the media than XP. MarketBeat recorded 16 mentions for Jefferies Financial Group and 2 mentions for XP. XP's average media sentiment score of 0.58 beat Jefferies Financial Group's score of 0.00 indicating that Jefferies Financial Group is being referred to more favorably in the media.
Jefferies Financial Group has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, XP has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500.
Jefferies Financial Group currently has a consensus price target of $44.00, indicating a potential downside of 7.02%. XP has a consensus price target of $27.50, indicating a potential upside of 26.90%. Given Jefferies Financial Group's higher probable upside, analysts plainly believe XP is more favorable than Jefferies Financial Group.
60.9% of Jefferies Financial Group shares are owned by institutional investors. Comparatively, 59.2% of XP shares are owned by institutional investors. 20.4% of Jefferies Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
XP beats Jefferies Financial Group on 11 of the 21 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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