CION Investment (NYSE:CION – Get Free Report) and Stifel Financial (NYSE:SF – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Valuation and Earnings
This table compares CION Investment and Stifel Financial”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CION Investment | $14.59 million | 23.76 | -$20.63 million | $0.06 | 117.42 |
| Stifel Financial | $5.82 billion | 1.76 | $683.78 million | $5.76 | 11.80 |
Stifel Financial has higher revenue and earnings than CION Investment. Stifel Financial is trading at a lower price-to-earnings ratio than CION Investment, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
32.0% of CION Investment shares are owned by institutional investors. Comparatively, 82.0% of Stifel Financial shares are owned by institutional investors. 0.6% of CION Investment shares are owned by insiders. Comparatively, 3.4% of Stifel Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
CION Investment has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Stifel Financial has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.
Profitability
This table compares CION Investment and Stifel Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CION Investment | 1.17% | 11.95% | 4.52% |
| Stifel Financial | 16.50% | 19.38% | 2.39% |
Dividends
CION Investment pays an annual dividend of $1.20 per share and has a dividend yield of 17.0%. Stifel Financial pays an annual dividend of $1.36 per share and has a dividend yield of 2.0%. CION Investment pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stifel Financial pays out 23.6% of its earnings in the form of a dividend. CION Investment has increased its dividend for 1 consecutive years and Stifel Financial has increased its dividend for 9 consecutive years.
Analyst Ratings
This is a breakdown of current ratings and price targets for CION Investment and Stifel Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CION Investment | 1 | 2 | 0 | 0 | 1.67 |
| Stifel Financial | 1 | 3 | 5 | 0 | 2.44 |
CION Investment presently has a consensus target price of $6.50, indicating a potential downside of 7.74%. Stifel Financial has a consensus target price of $85.71, indicating a potential upside of 26.07%. Given Stifel Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Stifel Financial is more favorable than CION Investment.
Summary
Stifel Financial beats CION Investment on 12 of the 17 factors compared between the two stocks.
About CION Investment
CION Investment Corporation is a business development company. It specializes in investments in senior secured loans, including unitranche loans, First Lien, second lien loans, long-term subordinated loans, and mezzanine loans; equity interests such as warrants or options; and corporate bonds; and other debt securities in middle-market companies. The firm invests in growth capital, acquisitions, leveraged buyouts, market/product expansion, refinancing and recapitalization. The fund also invests up to 30 percent of their assets opportunistically in other types of investments, including the securities of larger public companies and foreign securities. It also makes investments in the secondary loan market. The fund does not invest in start-up companies, turnaround situations, or companies with speculative business plans. The fund prefers to invest in high tech industries, healthcare, pharmaceuticals, business services, media, chemicals, plastic, rubber, telecommunication, consumer services, advertising, printing and publishing, consumer goods, durables, diversified financials, and other industries. It also invests in homebuilding, restaurants, beverage and tobacco bars, broadcasting, distributors, Non-durable good distribution, food beverage and tobacco, energy, oil gas and consumables fuels, insurance, aerospace and defense, industrial machinery, paper and forest product machinery, information technology, metals and mining, and real estate. It primarily seeks to invest in the United States. The fund seeks to invest between $5 million and $50 million in companies with an EBITDA between $25 million and $75 million with average targeted hold of $25 million. It also purchases minority interests in the form of common or preferred equity in the target companies, typically in conjunction with its debt investments or through a co-investment with a financial sponsor. The fund seeks to exit its investments through an initial public offering of common stock, a merger, a sale, or other recapitalization.
About Stifel Financial
Stifel Financial Corp., a financial services and bank holding company, provides retail and institutional wealth management, and investment banking services to individual investors, corporations, municipalities, and institutions in the United States and internationally. It operates in three segments: Global Wealth Management, Institutional Group, and Other. The company provides private client services, including securities transaction and financial planning services; institutional equity and fixed income sales, trading and research, and municipal finance services; investment banking services, such as mergers and acquisitions, public offerings, and private placements; and retail and commercial banking services comprising personal and commercial lending programs, as well as deposit accounts. It participates in and manages underwritings for corporate and public finance; and offers financial advisory and securities brokerage services. The company was founded in 1890 and is headquartered in Saint Louis, Missouri.
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