StoneX Group (NASDAQ:SNEX – Get Free Report) and Victory Capital (NASDAQ:VCTR – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.
Volatility and Risk
StoneX Group has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Victory Capital has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.
Earnings and Valuation
This table compares StoneX Group and Victory Capital”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| StoneX Group | $132.38 billion | 0.06 | $305.90 million | $4.19 | 16.58 |
| Victory Capital | $1.31 billion | 5.36 | $330.06 million | $5.44 | 20.91 |
Victory Capital has lower revenue, but higher earnings than StoneX Group. StoneX Group is trading at a lower price-to-earnings ratio than Victory Capital, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
75.9% of StoneX Group shares are owned by institutional investors. Comparatively, 87.7% of Victory Capital shares are owned by institutional investors. 11.8% of StoneX Group shares are owned by insiders. Comparatively, 9.5% of Victory Capital shares are owned 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.
Analyst Recommendations
This is a summary of current recommendations for StoneX Group and Victory Capital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| StoneX Group | 0 | 2 | 1 | 1 | 2.75 |
| Victory Capital | 0 | 4 | 3 | 1 | 2.62 |
StoneX Group presently has a consensus price target of $112.00, suggesting a potential upside of 61.24%. Victory Capital has a consensus price target of $105.71, suggesting a potential downside of 7.05%. Given StoneX Group’s stronger consensus rating and higher possible upside, analysts clearly believe StoneX Group is more favorable than Victory Capital.
Profitability
This table compares StoneX Group and Victory Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| StoneX Group | 0.33% | 20.18% | 1.05% |
| Victory Capital | 29.57% | 24.17% | 13.77% |
Summary
Victory Capital beats StoneX Group on 10 of the 14 factors compared between the two stocks.
About StoneX Group
StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. The company operates through Commercial, Institutional, Retail, and Global Payments segments. The Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The Institutional segment offers equity trading services to institutional clients; clearing and execution services in futures exchanges; brokerage foreign exchange services for the financial institutions and professional traders; and OTC products, as well as originates, structures, and places debt instruments in capital markets. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies, as well as engages in asset management business. The Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management services, as well as offers physical gold and other precious metals in various forms and denominations through Stonexbullion.com. The Global Payments segment provides customized payment, technology, and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and pricing and payments services. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.
About Victory Capital
Victory Capital Holdings, Inc., together with its subsidiaries, operates as an asset management company in the United States and internationally. It offers investment advisory, fund administration, fund compliance, fund transfer agent, fund distribution, and other management services. The company provides specialized investment strategies to institutions, intermediaries, retirement platforms, and individual investors. Its investment products include actively and passively managed mutual funds; rules-based and active exchange traded funds; institutional separate accounts; variable insurance products; alternative investments; and private closed-end funds; and a 529 Education Savings Plan. The company also offers strategies through third-party investment products, including mutual funds, third-party ETF model strategies, retail separately managed accounts, unified managed accounts through wrap account programs, Collective Investment Trusts, and undertakings for the collective investment in transferable securities. Victory Capital Holdings, Inc. was incorporated in 2013 and is based in San Antonio, Texas.
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