MKTX vs. IBKR, NMR, RJF, HOOD, SEIC, JEF, SF, FRHC, IRM, and SHG
Should you be buying MarketAxess stock or one of its competitors? The main competitors of MarketAxess include Interactive Brokers Group (IBKR), Nomura (NMR), Raymond James (RJF), Robinhood Markets (HOOD), SEI Investments (SEIC), Jefferies Financial Group (JEF), Stifel Financial (SF), Freedom (FRHC), Iron Mountain (IRM), and Shinhan Financial Group (SHG). These companies are all part of the "finance" sector.
MarketAxess vs.
Interactive Brokers Group (NASDAQ:IBKR) and MarketAxess (NASDAQ:MKTX) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, media sentiment, risk, institutional ownership, profitability, community ranking and analyst recommendations.
Interactive Brokers Group currently has a consensus price target of $97.17, indicating a potential upside of 18.71%. MarketAxess has a consensus price target of $331.36, indicating a potential downside of 13.82%. Given Interactive Brokers Group's stronger consensus rating and higher possible upside, equities analysts clearly believe Interactive Brokers Group is more favorable than MarketAxess.
Interactive Brokers Group has higher revenue and earnings than MarketAxess. Interactive Brokers Group is trading at a lower price-to-earnings ratio than MarketAxess, indicating that it is currently the more affordable of the two stocks.
MarketAxess received 48 more outperform votes than Interactive Brokers Group when rated by MarketBeat users. However, 56.36% of users gave Interactive Brokers Group an outperform vote while only 48.37% of users gave MarketAxess an outperform vote.
In the previous week, Interactive Brokers Group had 2 more articles in the media than MarketAxess. MarketBeat recorded 11 mentions for Interactive Brokers Group and 9 mentions for MarketAxess. Interactive Brokers Group's average media sentiment score of 1.01 beat MarketAxess' score of 0.90 indicating that Interactive Brokers Group is being referred to more favorably in the media.
97.8% of Interactive Brokers Group shares are owned by institutional investors. Comparatively, 96.8% of MarketAxess shares are owned by institutional investors. 3.3% of Interactive Brokers Group shares are owned by insiders. Comparatively, 1.9% of MarketAxess shares are owned 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.
Interactive Brokers Group pays an annual dividend of $0.40 per share and has a dividend yield of 0.5%. MarketAxess pays an annual dividend of $2.88 per share and has a dividend yield of 0.7%. Interactive Brokers Group pays out 10.7% of its earnings in the form of a dividend. MarketAxess pays out 43.3% 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. MarketAxess has raised its dividend for 14 consecutive years. MarketAxess is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
MarketAxess has a net margin of 34.84% compared to Interactive Brokers Group's net margin of 9.30%. MarketAxess' return on equity of 24.34% beat Interactive Brokers Group's return on equity.
Interactive Brokers Group has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, MarketAxess has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Summary
Interactive Brokers Group beats MarketAxess on 12 of the 21 factors compared between the two stocks.
New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding MKTX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartMedia Sentiment Over Time
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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MarketAxess Competitors List