Raymond James Financial (NYSE:RJF – Get Free Report) and Tri Continental (NYSE:TY – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.
Profitability
This table compares Raymond James Financial and Tri Continental’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Raymond James Financial | 13.57% | 19.07% | 2.64% |
| Tri Continental | N/A | N/A | N/A |
Dividends
Raymond James Financial pays an annual dividend of $2.16 per share and has a dividend yield of 1.2%. Tri Continental pays an annual dividend of $1.11 per share and has a dividend yield of 3.1%. Raymond James Financial pays out 18.8% of its earnings in the form of a dividend. Raymond James Financial has raised its dividend for 3 consecutive years.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Raymond James Financial | 0 | 8 | 5 | 0 | 2.38 |
| Tri Continental | 0 | 0 | 0 | 0 | 0.00 |
Raymond James Financial currently has a consensus price target of $181.00, indicating a potential upside of 0.08%. Given Raymond James Financial’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Raymond James Financial is more favorable than Tri Continental.
Institutional & Insider Ownership
83.8% of Raymond James Financial shares are held by institutional investors. Comparatively, 10.2% of Tri Continental shares are held by institutional investors. 0.6% of Raymond James Financial shares are held by insiders. Comparatively, 8.7% of Tri Continental shares are held 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.
Risk & Volatility
Raymond James Financial has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Tri Continental has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.
Earnings & Valuation
This table compares Raymond James Financial and Tri Continental”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Raymond James Financial | $15.91 billion | 2.19 | $2.13 billion | $11.47 | 15.77 |
| Tri Continental | N/A | N/A | N/A | N/A | N/A |
Raymond James Financial has higher revenue and earnings than Tri Continental.
Summary
Raymond James Financial beats Tri Continental on 10 of the 13 factors compared between the two stocks.
About Raymond James Financial
Raymond James Financial, Inc., a financial holding company, through its subsidiaries, engages in the underwriting, distribution, trading, and brokerage of equity and debt securities, and the sale of mutual funds and other investment products in the United States, Canada, Europe, and internationally. The company operates through Private Client Group, Capital Markets, Asset Management, RJ Bank, and Other segments. The Private Client Group segment provides securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance products to their individual clients; and borrowing and lending of securities to and from other broker-dealers, financial institutions, and other counterparties. The Capital Markets segment offers securities brokerage, trading, and research services to institutions with a focus on sale of the United States and Canadian equities and fixed income products; and manages and participates in underwritings, merger and acquisition services, and public finance activities. The Asset Management segment engages in the operations of Eagle, the Eagle Family of Funds, Cougar, the asset management operations of Raymond James & Associates, trust services of Raymond James Trust, and other fee-based asset management programs. The RJ Bank segment provides corporate loans, SBL, tax-exempt loans, and residential loans. The Other segment engages in private equity activities, including various direct and third party private equity investments; and private equity funds. Raymond James Financial, Inc. was founded in 1962 and is based in St. Petersburg, Florida.
About Tri Continental
Tri-Continental Corporation is a closed ended equity mutual fund launched and managed by Columbia Management Investment Advisers, LLC. It primarily invests in the public equity markets of the United States. The fund invests in stocks of companies that operate across diversified sectors. It seeks to invest in stocks of large-cap companies. The fund benchmarks the performance of its portfolio against S&P 500 Index. Tri-Continental Corporation was formed in January 1929 and is domiciled in the United States.
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