Interactive Brokers Group (IBKR) and Its Competitors Financial Survey

Interactive Brokers Group (NASDAQ: IBKR) is one of 31 public companies in the “Security brokers & dealers” industry, but how does it compare to its peers? We will compare Interactive Brokers Group to similar companies based on the strength of its earnings, profitability, analyst recommendations, dividends, institutional ownership, risk and valuation.

Institutional and Insider Ownership

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15.9% of Interactive Brokers Group shares are held by institutional investors. Comparatively, 63.6% of shares of all “Security brokers & dealers” companies are held by institutional investors. 2.0% of Interactive Brokers Group shares are held by insiders. Comparatively, 21.8% of shares of all “Security brokers & dealers” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Interactive Brokers Group has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Interactive Brokers Group’s peers have a beta of 8.84, meaning that their average share price is 784% more volatile than the S&P 500.

Dividends

Interactive Brokers Group pays an annual dividend of $0.40 per share and has a dividend yield of 0.5%. Interactive Brokers Group pays out 26.1% of its earnings in the form of a dividend. As a group, “Security brokers & dealers” companies pay a dividend yield of 1.6% and pay out 35.0% of their earnings in the form of a dividend.

Profitability

This table compares Interactive Brokers Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Interactive Brokers Group 4.58% 2.04% 0.22%
Interactive Brokers Group Competitors 5.68% 3.75% 5.13%

Analyst Ratings

This is a summary of current ratings and price targets for Interactive Brokers Group and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interactive Brokers Group 2 2 3 0 2.14
Interactive Brokers Group Competitors 325 1388 1449 69 2.39

Interactive Brokers Group presently has a consensus price target of $64.00, indicating a potential downside of 13.28%. As a group, “Security brokers & dealers” companies have a potential upside of 1.71%. Given Interactive Brokers Group’s peers stronger consensus rating and higher possible upside, analysts clearly believe Interactive Brokers Group has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Interactive Brokers Group and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Interactive Brokers Group $1.93 billion $76.00 million 48.24
Interactive Brokers Group Competitors $5.86 billion $745.79 million 24.61

Interactive Brokers Group’s peers have higher revenue and earnings than Interactive Brokers Group. Interactive Brokers Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Interactive Brokers Group peers beat Interactive Brokers Group on 13 of the 15 factors compared.

Interactive Brokers Group Company Profile

Interactive Brokers Group, Inc. operates as an automated electronic broker in approximately 120 electronic exchanges and market centers worldwide. It specializes in executing and clearing trades in securities, futures, foreign exchange instruments, bonds, and mutual funds. The company custodies and services accounts for hedge and mutual funds, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. It offers custody, prime brokerage, securities, and margin lending services. The company provides electronic execution and clearing services. Interactive Brokers Group, Inc. was founded in 1977 and is headquartered in Greenwich, Connecticut.

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