Analyzing FBR & Co (FBRC) and Its Competitors

FBR & Co (NASDAQ: FBRC) is one of 18 publicly-traded companies in the “Investment Banking” industry, but how does it compare to its peers? We will compare FBR & Co to similar companies based on the strength of its valuation, institutional ownership, profitability, dividends, earnings, risk and analyst recommendations.

Insider & Institutional Ownership

72.4% of FBR & Co shares are held by institutional investors. Comparatively, 59.6% of shares of all “Investment Banking” companies are held by institutional investors. 13.9% of FBR & Co shares are held by company insiders. Comparatively, 18.9% of shares of all “Investment Banking” companies 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.

Dividends

FBR & Co pays an annual dividend of $0.80 per share and has a dividend yield of 4.6%. FBR & Co pays out -9.9% of its earnings in the form of a dividend. As a group, “Investment Banking” companies pay a dividend yield of 2.7% and pay out -259.6% of their earnings in the form of a dividend.

Profitability

This table compares FBR & Co and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FBR & Co 3.49% 4.34% 0.49%
FBR & Co Competitors 2.09% 5.59% 4.26%

Analyst Ratings

This is a summary of recent recommendations for FBR & Co and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FBR & Co 0 1 0 0 2.00
FBR & Co Competitors 61 335 319 25 2.42

As a group, “Investment Banking” companies have a potential downside of 12.15%. Given FBR & Co’s peers stronger consensus rating and higher possible upside, analysts plainly believe FBR & Co has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares FBR & Co and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
FBR & Co N/A N/A -2.17
FBR & Co Competitors $902.64 million $129.13 million 251.44

FBR & Co’s peers have higher revenue and earnings than FBR & Co. FBR & Co is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

FBR & Co peers beat FBR & Co on 9 of the 12 factors compared.

About FBR & Co

FBR & Co. is an investment banking and institutional brokerage company. The Company focuses on the equity capital markets. The Company operates through two segments: capital markets, which includes investment banking, institutional brokerage and research, and principal investing. Through its broker-dealer operating subsidiaries, the Company focuses its business on providing: capital raising services, including underwriting and placement of public and private equity, equity-linked and debt securities; financial advisory services, including merger and acquisition (M&A) advisory, restructuring, liability management, recapitalization and strategic alternative analysis; institutional sales and trading services focused on equities, equity-linked securities, listed options, high-yield bonds, senior debt and bank loans, as well as securities lending activities, and differentiated securities research.

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