Intermediate Capital Group (LON:ICP) and Old Mutual (LON:OMU) are both mid-cap financial services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Profitability
This table compares Intermediate Capital Group and Old Mutual's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Intermediate Capital Group | N/A | N/A | N/A |
Old Mutual | N/A | N/A | N/A |
Analyst Ratings
This is a summary of current ratings and price targets for Intermediate Capital Group and Old Mutual, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Intermediate Capital Group | 0 | 2 | 5 | 0 | 2.71 |
Old Mutual | 0 | 0 | 0 | 0 | N/A |
Intermediate Capital Group presently has a consensus target price of GBX 1,742.33, indicating a potential downside of 11.51%. Given Intermediate Capital Group's higher probable upside, analysts clearly believe Intermediate Capital Group is more favorable than Old Mutual.
Valuation & Earnings
This table compares Intermediate Capital Group and Old Mutual's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Intermediate Capital Group | £406.70 million | 14.07 | N/A | GBX 54.30 | 36.26 |
Old Mutual | £137.54 billion | 0.02 | N/A | GBX (5.80) | -11.22 |
Old Mutual is trading at a lower price-to-earnings ratio than Intermediate Capital Group, indicating that it is currently the more affordable of the two stocks.
Dividends
Intermediate Capital Group pays an annual dividend of GBX 0.51 per share and has a dividend yield of 0.0%. Old Mutual pays an annual dividend of GBX 0.82 per share and has a dividend yield of 1.3%. Intermediate Capital Group pays out 0.9% of its earnings in the form of a dividend. Old Mutual pays out -14.2% 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. Old Mutual is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Intermediate Capital Group beats Old Mutual on 5 of the 8 factors compared between the two stocks.