Oppenheimer (NYSE:OPY) vs. Interactive Brokers Group (NASDAQ:IBKR) Critical Survey

Oppenheimer (NYSE:OPY) and Interactive Brokers Group (NASDAQ:IBKR) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Risk and Volatility

Oppenheimer has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Interactive Brokers Group has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Oppenheimer and Interactive Brokers Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oppenheimer 0 0 0 0 N/A
Interactive Brokers Group 1 1 4 0 2.50

Interactive Brokers Group has a consensus target price of $80.00, indicating a potential upside of 24.82%. Given Interactive Brokers Group’s higher possible upside, analysts clearly believe Interactive Brokers Group is more favorable than Oppenheimer.

Earnings and Valuation

This table compares Oppenheimer and Interactive Brokers Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oppenheimer $1.20 billion 0.53 $122.99 million N/A N/A
Interactive Brokers Group $2.48 billion 10.78 $195.00 million $2.49 25.74

Interactive Brokers Group has higher revenue and earnings than Oppenheimer.

Institutional and Insider Ownership

43.3% of Oppenheimer shares are held by institutional investors. Comparatively, 18.8% of Interactive Brokers Group shares are held by institutional investors. 27.8% of Oppenheimer shares are held by insiders. Comparatively, 11.8% of Interactive Brokers Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Oppenheimer and Interactive Brokers Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oppenheimer 11.50% 23.47% 5.92%
Interactive Brokers Group 9.39% 2.68% 0.26%

Dividends

Oppenheimer pays an annual dividend of $0.48 per share and has a dividend yield of 1.0%. Interactive Brokers Group pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. Interactive Brokers Group pays out 16.1% of its earnings in the form of a dividend. Oppenheimer has raised its dividend for 1 consecutive years. Oppenheimer is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Oppenheimer beats Interactive Brokers Group on 9 of the 15 factors compared between the two stocks.

About Oppenheimer

Oppenheimer Holdings Inc., through its subsidiaries, operates as a middle-market investment bank and full-service broker-dealer in the Americas, Europe, the Middle East, and Asia. The company offers brokerage services covering exchange-traded and over-the-counter corporate equity and debt securities, money market instruments, exchange-traded options and futures contracts, municipal bonds, mutual funds, exchange-traded funds, and unit investment trusts; financial and wealth planning services; and margin lending services. It also provides asset management services, including separately managed accounts, mutual fund managed accounts, discretionary portfolio management programs, non-discretionary investment advisory and consultation services, alternative investments, portfolio enhancement programs, and institutional taxable fixed income portfolio management strategies and solutions, as well as taxable and non-taxable fixed income portfolios and strategies. In addition, the company offers investment banking services, such as strategic advisory services and capital markets products; merger and acquisition, equities capital market, and debt capital market products and services; and institutional equity sales and trading, equity research, equity derivatives and index options, convertible bonds, and trading services. Further, it provides institutional fixed income sales and trading, fixed income research, public finance, and municipal trading services; repurchase agreements and securities lending services; and proprietary trading and investment activities. Additionally, the company offers underwritings, market-making, trust, and discount services. It serves high-net-worth individuals and families, corporate executives, public and private businesses, institutions and corporations, governments, financial sponsors, and domestic and international investors. The company was founded in 1881 and is headquartered in New York, New York.

About Interactive Brokers Group

Interactive Brokers Group, Inc. operates as an automated electronic broker worldwide. It specializes in executing and clearing trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, and exchange traded funds (ETFs). The company custodies and services accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. In addition, it offers custody, prime brokerage, securities, and margin lending services. The company serves institutional and individual customers through approximately 135 electronic exchanges and market centers. Interactive Brokers Group, Inc. was founded in 1977 and is headquartered in Greenwich, Connecticut.

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