Critical Comparison: Virtu Financial (VIRT) and Gleacher & Company Inc (GLCH)

Virtu Financial (NASDAQ:VIRT) and Gleacher & Company Inc (OTCMKTS:GLCH) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Dividends

Virtu Financial pays an annual dividend of $0.96 per share and has a dividend yield of 4.2%. Gleacher & Company Inc does not pay a dividend. Virtu Financial pays out 168.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

54.1% of Virtu Financial shares are held by institutional investors. 73.5% of Virtu Financial shares are held by company insiders. Comparatively, 29.6% of Gleacher & Company Inc shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Virtu Financial and Gleacher & Company Inc’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Virtu Financial $1.02 billion 4.28 $2.93 million $0.57 40.39
Gleacher & Company Inc N/A N/A N/A N/A N/A

Virtu Financial has higher revenue and earnings than Gleacher & Company Inc.

Analyst Ratings

This is a summary of recent ratings and price targets for Virtu Financial and Gleacher & Company Inc, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Virtu Financial 0 7 3 0 2.30
Gleacher & Company Inc 0 0 0 0 N/A

Virtu Financial currently has a consensus target price of $29.10, indicating a potential upside of 26.41%. Given Virtu Financial’s higher probable upside, equities research analysts clearly believe Virtu Financial is more favorable than Gleacher & Company Inc.

Profitability

This table compares Virtu Financial and Gleacher & Company Inc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Virtu Financial 11.30% 19.62% 3.41%
Gleacher & Company Inc N/A N/A N/A

Volatility & Risk

Virtu Financial has a beta of -0.77, suggesting that its stock price is 177% less volatile than the S&P 500. Comparatively, Gleacher & Company Inc has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500.

Summary

Virtu Financial beats Gleacher & Company Inc on 9 of the 11 factors compared between the two stocks.

Virtu Financial Company Profile

Virtu Financial, Inc., together with its subsidiaries, provides market making and liquidity services through its proprietary, multi-asset, and multi-currency technology platform to the financial markets worldwide. The company's Market Making segment principally consists of market making in the cash, futures, and options markets across equities, options, fixed income, currencies, and commodities. Its Execution Services segment comprises agency-based trading and trading venues, which offer execution services in equities, ETFs, futures, and fixed income to institutions, banks, and broker dealers. Virtu Financial, Inc. was founded in 2008 and is headquartered in New York, New York.

Gleacher & Company Inc Company Profile

Gleacher & Company, Inc. went out of business. The firm provides strategic and financial advisory services to corporate and institutional clients. It operates through Investment Banking, MBS & Rates, and Credit Products segments. It also invests and manages a fund that holds investments in privately held companies; and offers residential mortgage lending. Gleacher & Company, Inc. was founded in 1952 and is headquartered in Albany, New York.

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