Analyzing Siebert Financial (NASDAQ:SIEB) & UBS Group (NYSE:UBS)

Siebert Financial (NASDAQ:SIEB) and UBS Group (NYSE:UBS) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Siebert Financial and UBS Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Siebert Financial	1	0	0	0	1.00
UBS Group	2	5	4	0	2.18

UBS Group has a consensus target price of $60.30, indicating a potential upside of 26.45%. Given UBS Group’s stronger consensus rating and higher possible upside, analysts clearly believe UBS Group is more favorable than Siebert Financial.

Earnings & Valuation

This table compares Siebert Financial and UBS Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Siebert Financial	$94.20 million	0.95	$5.12 million	($0.03)	-72.67
UBS Group	$50.90 billion	2.93	$7.77 billion	$2.94	16.22

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

Insider & Institutional Ownership

1.5% of Siebert Financial shares are held by institutional investors. 46.0% of Siebert Financial shares are held by company insiders. Comparatively, 1.0% of UBS Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Siebert Financial and UBS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Siebert Financial	-1.07%	-1.25%	-0.15%
UBS Group	13.10%	10.50%	0.57%

Volatility and Risk

Siebert Financial has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, UBS Group has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Summary

UBS Group beats Siebert Financial on 12 of the 14 factors compared between the two stocks.

About Siebert Financial

Siebert Financial Corp., through its subsidiaries, engages in the retail brokerage and investment advisory businesses in the United States and Internationally. It offers self-directed trading, market making and fixed income investment, stock borrow, stock loan, equity compensation plans, wealth management, and financial advisory services; independent retail execution services; and retail customer services. The company also offers self-directed retirement accounts, as well as lends customers a portion of the market value of marginable securities held in the customer's account. In addition, the company provides data technology platform that offers various services, such as email and messaging, market data systems and third party trading systems, business productivity tools, and customer relationship management systems. Further, it offers a Robo-Advisor platform that provides clients with an automated wealth management solution; and various insurance products, such as fixed annuities, personal insurance, property and casualty insurance, natural disaster insurance, and life and disability. Siebert Financial Corp. was incorporated in 1934 and is headquartered in Miami Beach, Florida.

About UBS Group

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. It also provides personal banking products and services, such as deposits, credit and debit cards, and online and mobile banking, as well as lending, investments, retirement, and wealth management services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, and transaction banking solutions for payment and cash management services, trade and export finance, and global custody solutions. In addition, the company offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. Further, it advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; distributes, trades in, finances, and clears cash equities and equity-linked products; structures, originates, and distributes new equity and equity-linked issues; and originates, distributes, manages risk, and provides liquidity in foreign exchange, rates, credit and precious metals. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.