Financial Survey: E-Trade (ETFC) vs. The Competition

E-Trade (NASDAQ: ETFC) is one of 89 publicly-traded companies in the “Federal savings institutions” industry, but how does it contrast to its competitors? We will compare E-Trade to related companies based on the strength of its dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Earnings and Valuation

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This table compares E-Trade and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
E-Trade $2.37 billion $614.00 million 26.62
E-Trade Competitors $842.53 million $158.57 million 22.19

E-Trade has higher revenue and earnings than its competitors. E-Trade is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

93.7% of E-Trade shares are held by institutional investors. Comparatively, 39.2% of shares of all “Federal savings institutions” companies are held by institutional investors. 0.1% of E-Trade shares are held by insiders. Comparatively, 9.9% of shares of all “Federal savings institutions” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

E-Trade has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, E-Trade’s competitors have a beta of 0.39, indicating that their average stock price is 61% less volatile than the S&P 500.

Profitability

This table compares E-Trade and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
E-Trade 25.95% 10.07% 1.05%
E-Trade Competitors 12.68% 2.21% 0.73%

Analyst Ratings

This is a breakdown of recent ratings and target prices for E-Trade and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
E-Trade 0 2 13 2 3.00
E-Trade Competitors 248 995 965 53 2.36

E-Trade currently has a consensus target price of $58.06, indicating a potential downside of 0.41%. As a group, “Federal savings institutions” companies have a potential upside of 1.95%. Given E-Trade’s competitors higher possible upside, analysts plainly believe E-Trade has less favorable growth aspects than its competitors.

Summary

E-Trade beats its competitors on 11 of the 13 factors compared.

E-Trade Company Profile

E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand. It also offers investor-focused banking products, primarily sweep deposits to retail investors; Federal Deposit Insurance Corporation insurance services; clearing and settlement services; investment advisory services; and financial corporate services, such as software and services for managing equity compensation plans to its corporate clients. The company provides its services to customers through digital platforms; and a network of industry-licensed customer service representatives and financial consultants through phone, email, and online at two national financial centers, as well as in person through 30 regional financial centers in the United States. E*TRADE Financial Corporation was founded in 1982 and is headquartered in New York, New York.

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