The Ziegler Companies (OTCMKTS:ZGCO) versus JMP Group (NYSE:JMP) Financial Analysis

The Ziegler Companies (OTCMKTS:ZGCO) and JMP Group (NYSE:JMP) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Institutional and Insider Ownership

6.6% of JMP Group shares are owned by institutional investors. 32.8% of The Ziegler Companies shares are owned by insiders. Comparatively, 58.7% of JMP Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares The Ziegler Companies and JMP Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Ziegler Companies N/A N/A N/A
JMP Group -23.51% 7.71% 2.04%

Risk and Volatility

The Ziegler Companies has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500. Comparatively, JMP Group has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for The Ziegler Companies and JMP Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Ziegler Companies 0 0 0 0 N/A
JMP Group 0 0 1 0 3.00

JMP Group has a consensus target price of $7.50, indicating a potential upside of 47.35%. Given JMP Group’s higher probable upside, analysts plainly believe JMP Group is more favorable than The Ziegler Companies.

Earnings & Valuation

This table compares The Ziegler Companies and JMP Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Ziegler Companies N/A N/A N/A N/A N/A
JMP Group $100.08 million 1.01 -$6.55 million ($0.04) -127.25

The Ziegler Companies has higher earnings, but lower revenue than JMP Group.

Summary

JMP Group beats The Ziegler Companies on 8 of the 9 factors compared between the two stocks.

About The Ziegler Companies

Ziegler Cos., Inc. engages in the provision of investment banking services for the healthcare, senior living, religion, and education sectors. It operates through the following segments: Institutional, Wealth Management, and Corporate. The Institutional segment consists of investment banking, corporate finance, financial advisory, fixed income institutional sales and trading, private placement, and financial services. The Wealth Management segment offers financial products and financial planning services through its retail branch distribution network. The Corporate segment includes company’s proprietary investing and financing activities. The company was founded by Ben Ziegler in 1902 and is headquartered in Chicago, IL.

About JMP Group

JMP Group LLC, together with its subsidiaries, provides investment banking, sales and trading, equity research, and asset management products and services in the United States. The company operates through Broker-Dealer, Asset Management Fee Income, and Investment Income segments. It offers various services, such as underwriting and acting as a placement agent for public and private capital markets raising transactions; and financial advisory services in mergers and acquisitions, restructuring, and other strategic transactions, as well as institutional brokerage services and equity research services. The company is also involved in the management of a range of pooled investment vehicles, including the hedge funds, private equity funds, hedge funds of funds, and collateralized loan obligations. In addition, it engages in investing in public and private securities, and investment funds, as well as other investing activities. The company also provides investment advisory services to business development companies. It serves corporates, institutional clients and investors, and high net-worth individuals. JMP Group LLC was founded in 1999 and is headquartered in San Francisco, California.

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