Analyzing Raymond James Financial (NYSE:RJF) & SBI (OTCMKTS:SBHGF)

SBI (OTCMKTS:SBHGF) and Raymond James Financial (NYSE:RJF) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares SBI and Raymond James Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SBI	14.51%	12.48%	0.75%
Raymond James Financial	13.42%	18.33%	2.65%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for SBI and Raymond James Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBI	0	0	0	0	0.00
Raymond James Financial	0	9	3	1	2.38

Raymond James Financial has a consensus price target of $177.20, indicating a potential upside of 6.96%. Given Raymond James Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Raymond James Financial is more favorable than SBI.

Insider & Institutional Ownership

83.8% of Raymond James Financial shares are owned by institutional investors. 0.5% of Raymond James Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

SBI has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Raymond James Financial has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Valuation & Earnings

This table compares SBI and Raymond James Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBI	$9.48 billion	1.43	$1.07 billion	$5.81	7.74
Raymond James Financial	$13.84 billion	2.39	$2.14 billion	$10.29	16.10

Raymond James Financial has higher revenue and earnings than SBI. SBI is trading at a lower price-to-earnings ratio than Raymond James Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Raymond James Financial beats SBI on 14 of the 15 factors compared between the two stocks.

About SBI

SBI Holdings, Inc. engages in the online securities and investment businesses. It operates through five business segments: Financial Services Business, Asset Management Business, Investment Business, Crypto-Asset Business, and Non-financial Business segments. The Financial Services Business segment consists of a range of finance-related business, including securities brokerage business; banking services business; and life, property, and casualty insurance business. The Asset Management Business segment includes setting, solicitation, and management of investment trust; investment advice; and financial products information. The Investment Business segment includes fund management and investment in Internet technology, fintech, blockchain, finance, and biotechnology-related venture companies; private equity; and funds management businesses. The Crypto-asset Business segment provides crypto-asset exchange and trading services. The Non-Financial Business segment consists of biotechnology; development and distribution of pharmaceutical products, health foods, and cosmetics with 5-aminolevulinic acid; research and development of antibody drugs and nucleic acid medicine in the field of cancer and immunology; the digitization of medical and health information; provision of solutions and services that promote the use of medical big data, medical finance; business working on advanced fields related to Web 3.0; and renewable energy business. The company is also involved in the real estate secured loans, online mobile game, and e-sports related businesses. In addition, it operates and develops cybersecurity systems; exports used cars; offers back-office support services; and develops, operates, manages, and invests in real estate properties. The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan.

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.