Head to Head Comparison: Nomura (NYSE:NMR) vs. Value Line (NASDAQ:VALU)

Value Line (NASDAQ:VALU) and Nomura (NYSE:NMR) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Earnings & Valuation

This table compares Value Line and Nomura”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Value Line	$33.45 million	10.77	$21.63 million	$2.11	18.20
Nomura	$31.61 billion	0.94	$2.39 billion	$0.86	11.80

Nomura has higher revenue and earnings than Value Line. Nomura is trading at a lower price-to-earnings ratio than Value Line, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

6.3% of Value Line shares are held by institutional investors. Comparatively, 15.1% of Nomura shares are held by institutional investors. 0.0% of Value Line shares are held by company insiders. Comparatively, 0.0% of Nomura shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Value Line pays an annual dividend of $1.40 per share and has a dividend yield of 3.6%. Nomura pays an annual dividend of $0.24 per share and has a dividend yield of 2.4%. Value Line pays out 66.4% of its earnings in the form of a dividend. Nomura pays out 27.9% 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. Value Line has raised its dividend for 11 consecutive years. Value Line is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Value Line and Nomura, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Value Line	0	1	0	0	2.00
Nomura	0	1	3	1	3.00

Nomura has a consensus price target of $10.20, indicating a potential upside of 0.49%. Given Nomura’s stronger consensus rating and higher possible upside, analysts clearly believe Nomura is more favorable than Value Line.

Volatility & Risk

Value Line has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Nomura has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Profitability

This table compares Value Line and Nomura’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Value Line	60.27%	18.43%	13.14%
Nomura	8.09%	10.42%	0.63%

About Value Line

Value Line, Inc. produces and sells investment periodicals and related publications. Its investment periodicals and related publications cover a range of investments, including stocks, mutual funds, exchange traded funds (ETFs), and options. The company's research services include The Value Line Investment Survey, The Value Line Investment Survey – Small and Mid-Cap, The Value Line 600, and The Value Line Fund Advisor Plus that provide statistical and text coverage of various investment securities, with an emphasis placed on its proprietary research, analysis, and statistical ranks. It also provides niche newsletters comprising Value Line Select: Dividend Income & Growth, Value Line Select: ETFs, The Value Line Special Situations Service, The Value Line M&A Service, The Value Line Climate Change Investing Service, and The Value Line Information You Should Know Wealth Newsletter that offer information on a less comprehensive basis for securities that are of particular interest to subscribers; digital versions of its products through its Website, www.valueline.com; The Value Line Research Center online platform; and investment analysis software, such as The Value Line Investment Analyzer and The New Value Line ETFs Service. In addition, the company offers current and historical financial databases comprising fundamental DataFile, estimates and projections, and mutual funds; and copyright products, which include unit investment trusts, variable annuities, managed accounts, and ETFs. Further, it operates as publishing unit for the investment related periodical publications and copyrights; places advertising on behalf of the company's publications; and distributes print publications. It serves individual and professional investors, as well as institutions, including municipal and university libraries, and investment firms. The company was founded in 1931 and is headquartered in New York, New York. Value Line, Inc. is a subsidiary of Arnold Bernhard & Co., Inc.

About Nomura

Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. It operates through three segments: Retail, Investment Management, and Wholesale. The Retail segment offers various financial products and investment consultation services. The Investment Management segment engages in the management of funds, investment trusts, and other investment solutions; and provision of investment advisory, custodial, and administrative services. The Wholesale segment is involved in the research, sale, trading, agency execution, and market-making of fixed income and equity-related products. This segment also engages in underwriting various securities and other financial instruments, such as various classes of shares, convertible and exchangeable securities, investment grade and high yield debts, sovereign and emerging market debts, structured securities, and other securities; arranging private placements, as well as other capital raising activities; and the provision of financial advisory services on business transactions comprising mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions. The company was formerly known as The Nomura Securities Co., Ltd. and changed its name to Nomura Holdings, Inc. in October 2001. Nomura Holdings, Inc. was incorporated in 1925 and is headquartered in Tokyo, Japan.