XP (NASDAQ:XP – Get Free Report) is one of 1,744 publicly-traded companies in the “Capital Markets” industry, but how does it contrast to its competitors? We will compare XP to related businesses based on the strength of its valuation, dividends, analyst recommendations, institutional ownership, profitability, earnings and risk.
Valuation & Earnings
This table compares XP and its competitors top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| XP | $3.30 billion | $925.91 million | 7.94 |
| XP Competitors | $5.22 billion | $398.52 million | 17.70 |
XP’s competitors have higher revenue, but lower earnings than XP. XP is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Profitability
This table compares XP and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| XP | 27.20% | 22.19% | 1.33% |
| XP Competitors | 318.34% | 79.19% | 3.72% |
Analyst Ratings
This is a summary of current ratings and recommmendations for XP and its competitors, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| XP | 0 | 5 | 4 | 0 | 2.44 |
| XP Competitors | 5549 | 20118 | 22454 | 642 | 2.37 |
XP presently has a consensus target price of $26.17, indicating a potential upside of 72.49%. As a group, “Capital Markets” companies have a potential upside of 21.63%. Given XP’s stronger consensus rating and higher possible upside, equities research analysts plainly believe XP is more favorable than its competitors.
Institutional and Insider Ownership
59.2% of XP shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 13.0% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Dividends
XP pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. XP pays out 20.9% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.1% and pay out 30.0% of their earnings in the form of a dividend.
Risk & Volatility
XP has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, XP’s competitors have a beta of 0.80, indicating that their average stock price is 20% less volatile than the S&P 500.
Summary
XP competitors beat XP on 9 of the 15 factors compared.
About XP
XP Inc. provides financial products and services in Brazil. It offers securities brokerage, private pension plans, commercial, and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth customers and institutional clients. The company also offers XP Educação, an online financial education portal that offers seminars, classes, and learning tools to help teach individuals on topics, such as basics of investing, techniques, and investment strategies, as well as insurance brokerage services. In addition, it operates XP Platform, an open product platform that provides clients to access investment products in the market, including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds, and others. The company was founded in 2001 and is based in São Paulo, Brazil.
Receive News & Ratings for XP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for XP and related companies with MarketBeat.com's FREE daily email newsletter.
