ONEX (OTCMKTS:ONEXF – Get Free Report) and Nasdaq (NASDAQ:NDAQ – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Analyst Ratings
This is a breakdown of recent recommendations for ONEX and Nasdaq, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ONEX | 0 | 2 | 2 | 0 | 2.50 |
| Nasdaq | 0 | 1 | 8 | 2 | 3.09 |
Nasdaq has a consensus target price of $110.30, indicating a potential upside of 10.58%. Given Nasdaq’s stronger consensus rating and higher probable upside, analysts clearly believe Nasdaq is more favorable than ONEX.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| ONEX | 63.83% | 5.34% | 4.10% |
| Nasdaq | 22.60% | 18.38% | 7.63% |
Risk & Volatility
ONEX has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Nasdaq has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.
Valuation & Earnings
This table compares ONEX and Nasdaq”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ONEX | $899.00 million | 7.01 | $617.00 million | $6.68 | 12.37 |
| Nasdaq | $8.22 billion | 6.78 | $1.79 billion | $3.43 | 29.08 |
Nasdaq has higher revenue and earnings than ONEX. ONEX is trading at a lower price-to-earnings ratio than Nasdaq, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
0.7% of ONEX shares are owned by institutional investors. Comparatively, 72.5% of Nasdaq shares are owned by institutional investors. 0.6% of Nasdaq shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Dividends
ONEX pays an annual dividend of $0.28 per share and has a dividend yield of 0.3%. Nasdaq pays an annual dividend of $1.24 per share and has a dividend yield of 1.2%. ONEX pays out 4.2% of its earnings in the form of a dividend. Nasdaq pays out 36.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Nasdaq has raised its dividend for 14 consecutive years. Nasdaq is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Nasdaq beats ONEX on 13 of the 18 factors compared between the two stocks.
About ONEX
Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions. The firm makes investments in buyouts, large- middle market, large-cap, mid-cap, and small-cap market and distressed companies. It also invests in recapitalization, growth capital, corporate carve-outs of subsidiaries and mission-critical supply divisions from multinational corporations, operational restructurings of undervalued businesses, and builds up. The firm seeks to invest in technology, electronics manufacturing services, industrial, aerospace, healthcare, retail, restaurants, industrials products, customer care services, metal services, building products, entertainment, gaming, cabinetry products, commercial vehicles, commercial and investment banking, financial services, commercial and multi-unit residential real estate. It invests in global businesses headquartered in North America, including United States and Canada, or Europe. The firm seeks to invest between $125 million and $1 billion in companies that have minimum revenues of $300 million. It does not consider size if the company is in an industry in which the firm already has presence. The firm seeks to make direct as well as co-investments through managed private equity, real estate and credit funds. It seeks to acquire a control position in its portfolio companies. Onex Corporation was founded in 1984 and is based in Toronto, Canada with additional offices in New York, New York; Englewood Cliffs, New Jersey; Boston, Massachusetts and London, United Kingdom.
About Nasdaq
Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. It operates in three segments: Capital Access Platforms, Financial Technology, and Market Services. The Capital Access Platforms segment sells and distributes historical and real-time market data; and develops and licenses Nasdaq-branded indices and financial products. This segment also offers investor relations intelligence, governance solutions, and ESG solutions; and insights and workflow solutions, as well as operates listing platforms. The Financial Technology segment offers Verafin, a cloud-based platform to detect, investigate, and report money laundering and financial frauds; surveillance solutions, including a SaaS platform to assist in complying with market rules, regulations, and internal market surveillance policies; AxiomSL, a risk data management and regulatory reporting solution; and Calypso, a front-to-back trading technology solution for the financial market. This segment also handles assets, comprising cash equities, equity derivatives, currencies, various interest-bearing securities, commodities, energy products, and digital currencies; and trade management and colocation services. The Market Platforms segment offers equity derivative trading and clearing, cash equity trading, fixed income and commodities trading and clearing, and currency trading services. This segment operates various exchanges and other marketplace facilities across various asset classes which includes derivatives, commodities, cash equity, debt, structured products, and exchange traded products; and provides clearing, settlement, and central depository services. The company was formerly known as The NASDAQ OMX Group, Inc. and changed its name to Nasdaq, Inc. in September 2015. Nasdaq, Inc. was founded in 1971 and is headquartered in New York, New York.
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