Jefferies Financial Group (NYSE:JEF – Get Free Report) and London Stock Exchange Group (OTCMKTS:LNSTY – Get Free Report) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
Institutional and Insider Ownership
60.9% of Jefferies Financial Group shares are owned by institutional investors. 19.9% of Jefferies Financial Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for Jefferies Financial Group and London Stock Exchange Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Jefferies Financial Group | 0 | 5 | 2 | 0 | 2.29 |
| London Stock Exchange Group | 0 | 0 | 4 | 1 | 3.20 |
Valuation & Earnings
This table compares Jefferies Financial Group and London Stock Exchange Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Jefferies Financial Group | $10.82 billion | 1.00 | $710.47 million | $3.58 | 15.59 |
| London Stock Exchange Group | $10.96 billion | 5.50 | $875.36 million | N/A | N/A |
London Stock Exchange Group has higher revenue and earnings than Jefferies Financial Group.
Profitability
This table compares Jefferies Financial Group and London Stock Exchange Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Jefferies Financial Group | 7.58% | 9.23% | 1.31% |
| London Stock Exchange Group | N/A | N/A | N/A |
Dividends
Jefferies Financial Group pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. London Stock Exchange Group pays an annual dividend of $0.25 per share and has a dividend yield of 0.9%. Jefferies Financial Group pays out 44.7% of its earnings in the form of a dividend. Jefferies Financial Group has increased its dividend for 2 consecutive years. Jefferies Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Jefferies Financial Group beats London Stock Exchange Group on 8 of the 15 factors compared between the two stocks.
About Jefferies Financial Group
Jefferies Financial Group Inc. operates as an investment banking and capital markets firm in the Americas, Europe, the Middle East, and the Asia-Pacific. The company operates in two segments, Investment Banking and Capital Markets, and Asset Management. It provides investment banking, advisory services with respect to mergers or acquisitions, debt financing, restructurings or recapitalizations, and private capital advisory transactions; underwriting and placement services related to corporate debt, municipal bonds, mortgage-backed and asset-backed securities, equity and equity-linked securities, and loan syndication services; and corporate lending services. The company also offers financing, securities lending, and other prime brokerage services; equities research, sales, and trading services; wealth management services; and online foreign exchange trading services. In addition, it provides investment grade distressed debt securities, U.S. and European government and agency securities, municipal bonds, leveraged loans, emerging markets debt, and interest rate and credit index derivative products; and manages and offers services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. The company was formerly known as Leucadia National Corporation and changed its name to Jefferies Financial Group Inc. in May 2018. Jefferies Financial Group Inc. was founded in 1962 and is headquartered in New York, New York.
About London Stock Exchange Group
London Stock Exchange Group plc operates as a financial markets infrastructure and data provider primarily in the United Kingdom and internationally. The company operates in three segments: Data & Analytics, Capital Markets, and Post Trade. It operates a range of international equity, fixed income, exchange-traded funds/exchange-traded products, and foreign exchange markets through the London Stock Exchange, AIM, Turquoise, FXall, Matching, and Tradeweb. The company also provides information and data products, such as indexes, benchmarks, real time pricing data and trade reporting, and reconciliation services, as well as network connection and services; market trading services; and clearing, risk management, capital optimization, and regulatory reporting solutions. In addition, it licenses capital markets; installs software; and provides maintenance, and events and media services. The company was founded in 1698 and is headquartered in London, the United Kingdom.
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