Nomura (NMR) vs. Jefferies Group (NYSE:JEF) Critical Review

Nomura (NYSE: NMR) and Jefferies Group (NYSE:JEF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Nomura and Jefferies Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nomura 0 1 3 0 2.75
Jefferies Group 0 0 0 0 N/A

Insider & Institutional Ownership

0.6% of Nomura shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Nomura and Jefferies Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nomura $12.98 billion 1.67 $2.23 billion $0.64 9.88
Jefferies Group N/A N/A N/A $1.09 N/A

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

Dividends

Nomura pays an annual dividend of $0.07 per share and has a dividend yield of 1.1%. Jefferies Group does not pay a dividend. Nomura pays out 10.9% of its earnings in the form of a dividend.

Profitability

This table compares Nomura and Jefferies Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nomura 14.22% 8.76% 0.58%
Jefferies Group N/A N/A N/A

Summary

Nomura beats Jefferies Group on 7 of the 9 factors compared between the two stocks.

Nomura Company Profile

Nomura Holdings, Inc. (Nomura) is a financial services company. The Company, through its broker-dealer, banking and other financial services subsidiaries, provide investment, financing and related services to individual, institutional and government clients across the world. The Company’s segments include Retail, Asset Management and Wholesale. Its clients include individuals, corporations, financial institutions, governments and governmental agencies. The Company’s Retail segment provides investment consultation services to individual clients in Japan. The Company’s Asset Management segment develops and manages investment trusts, and provides investment advisory services. The Company’s Wholesale segment is engaged in the sales and trading of debt and equity securities, derivatives, and currencies on a global basis, and provides investment banking services, such as the underwriting of debt and equity securities, as well as mergers and acquisitions and financial advice.

Jefferies Group Company Profile

Jefferies Group LLC and its subsidiaries operate as a securities and investment banking firm. The Company operates in two business segments: Capital Markets segment consists of the Company’s securities and commodities trading activities and its investment banking activities, and Asset Management segment includes asset management activities and related services. On July 1, 2011, the Company acquired the Bache Global Commodities Group from Prudential Financial, Inc., and as of November 30, 2011, the Company operated a futures commission merchant through Jefferies Bache, LLC in the United States and a global commodities and financial derivatives broker through Jefferies Bache Limited in the United Kingdom. Effective March 1, 2013, Leucadia National Corp (Leucadia) acquired the remaining 71.4% interest in Jefferies Group Inc . Effective March 1, 2013, Leucadia National Corp (Leucadia) acquired the remaining 71.4% interest in Jefferies Group Inc.

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