Comparing Stifel Financial (NYSE:SF) & Vinci Compass Investments (NASDAQ:VINP)

Vinci Compass Investments (NASDAQ:VINP) and Stifel Financial (NYSE:SF) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Dividends

Vinci Compass Investments pays an annual dividend of $0.68 per share and has a dividend yield of 5.9%. Stifel Financial pays an annual dividend of $1.36 per share and has a dividend yield of 1.9%. Vinci Compass Investments pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stifel Financial pays out 24.3% of its earnings in the form of a dividend. Stifel Financial has increased its dividend for 9 consecutive years.

Volatility and Risk

Vinci Compass Investments has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, Stifel Financial has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Profitability

This table compares Vinci Compass Investments and Stifel Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vinci Compass Investments	23.77%	12.65%	6.67%
Stifel Financial	16.11%	19.22%	2.36%

Earnings and Valuation

This table compares Vinci Compass Investments and Stifel Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vinci Compass Investments	$175.01 million	4.30	$38.97 million	$0.70	16.43
Stifel Financial	$5.86 billion	1.80	$683.78 million	$5.59	12.52

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Vinci Compass Investments and Stifel Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vinci Compass Investments	1	1	1	0	2.00
Stifel Financial	0	4	5	0	2.56

Vinci Compass Investments currently has a consensus price target of $14.00, suggesting a potential upside of 21.74%. Stifel Financial has a consensus price target of $86.08, suggesting a potential upside of 23.01%. Given Stifel Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Stifel Financial is more favorable than Vinci Compass Investments.

Institutional & Insider Ownership

34.1% of Vinci Compass Investments shares are held by institutional investors. Comparatively, 82.0% of Stifel Financial shares are held by institutional investors. 49.3% of Vinci Compass Investments shares are held by insiders. Comparatively, 3.4% of Stifel Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Stifel Financial beats Vinci Compass Investments on 11 of the 17 factors compared between the two stocks.

About Vinci Compass Investments

Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is based in Rio de Janeiro, Brazil.

About Stifel Financial

Stifel Financial Corp., a financial services and bank holding company, provides retail and institutional wealth management, and investment banking services to individual investors, corporations, municipalities, and institutions in the United States and internationally. It operates in three segments: Global Wealth Management, Institutional Group, and Other. The company provides private client services, including securities transaction and financial planning services; institutional equity and fixed income sales, trading and research, and municipal finance services; investment banking services, such as mergers and acquisitions, public offerings, and private placements; and retail and commercial banking services comprising personal and commercial lending programs, as well as deposit accounts. It participates in and manages underwritings for corporate and public finance; and offers financial advisory and securities brokerage services. The company was founded in 1890 and is headquartered in Saint Louis, Missouri.