B. Riley Financial (NASDAQ:RILY – Get Free Report) and Nasdaq (NASDAQ:NDAQ – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Earnings and Valuation
This table compares B. Riley Financial and Nasdaq”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| B. Riley Financial | $967.60 million | 0.25 | $307.42 million | $12.70 | 0.47 |
| Nasdaq | $8.22 billion | 6.04 | $1.79 billion | $3.43 | 25.88 |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for B. Riley Financial and Nasdaq, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| B. Riley Financial | 1 | 0 | 0 | 0 | 1.00 |
| Nasdaq | 0 | 1 | 8 | 2 | 3.09 |
Nasdaq has a consensus target price of $110.30, indicating a potential upside of 24.27%. Given Nasdaq’s stronger consensus rating and higher probable upside, analysts plainly believe Nasdaq is more favorable than B. Riley Financial.
Profitability
This table compares B. Riley Financial and Nasdaq’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| B. Riley Financial | 35.88% | 39,260.09% | 22.99% |
| Nasdaq | 22.60% | 18.38% | 7.63% |
Volatility & Risk
B. Riley Financial has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Nasdaq has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Institutional and Insider Ownership
50.2% of B. Riley Financial shares are owned by institutional investors. Comparatively, 72.5% of Nasdaq shares are owned by institutional investors. 27.8% of B. Riley Financial shares are owned by company insiders. Comparatively, 0.6% of Nasdaq 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.
Summary
Nasdaq beats B. Riley Financial on 9 of the 15 factors compared between the two stocks.
About B. Riley Financial
B. Riley Financial, Inc., through its subsidiaries, provides financial services to corporate, institutional, and high net worth clients in North America, Australia, the Asia Pacific, and Europe. The company operates through six segments: Capital Markets, Wealth Management, Financial Consulting, Auction and Liquidation, Communications, and Consumer. The Capital Markets segments offers investment banking, equity research, institutional sales and trading, securities lending, fund and asset management, direct lending, venture capital, proprietary trading, and investment services; merger and acquisition, restructuring advisory, and recapitalization services; public and private equity offerings; and debt financing solutions. This segment also trades in equity securities. The Wealth Management segment provides wealth management and tax services. The Financial Consulting segment offers bankruptcy restructuring and turnaround management, forensic accounting and litigation support, valuation and appraisal, and real estate services. The Auction and Liquidation Segment provides auction and liquidation services. The Communications segment offers dial-up, mobile broadband and digital subscriber line services under the NetZero and Juno brands; cloud communication services; VoIP cloud-based technology and communication devices and subscription services through magicJack; and mobile phone voice, text, and data services and devices through Marconi Wireless. The Consumer segment sells laptop and computer accessories. The company was formerly known as Great American Group, Inc. and changed its name to B. Riley Financial, Inc. in November 2014. B. Riley Financial, Inc. was founded in 1973 and is headquartered in Los Angeles, California.
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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