Investment Technology Group (NYSE: ITG) is one of 17 publicly-traded companies in the “Investment Banking” industry, but how does it compare to its peers? We will compare Investment Technology Group to related businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Investment Technology Group -6.57% 2.92% 1.37%
Investment Technology Group Competitors 2.09% 5.03% 3.95%

Dividends

Investment Technology Group pays an annual dividend of $0.28 per share and has a dividend yield of 1.5%. Investment Technology Group pays out -29.5% of its earnings in the form of a dividend. As a group, “Investment Banking” companies pay a dividend yield of 2.6% and pay out -259.6% of their earnings in the form of a dividend. Investment Technology Group lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider and Institutional Ownership

85.1% of Investment Technology Group shares are held by institutional investors. Comparatively, 59.6% of shares of all “Investment Banking” companies are held by institutional investors. 2.4% of Investment Technology Group shares are held by company insiders. Comparatively, 18.9% of shares of all “Investment Banking” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Investment Technology Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Investment Technology Group 0 1 1 0 2.50
Investment Technology Group Competitors 61 336 319 25 2.42

Investment Technology Group currently has a consensus price target of $20.50, suggesting a potential upside of 11.78%. As a group, “Investment Banking” companies have a potential downside of 14.05%. Given Investment Technology Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Investment Technology Group is more favorable than its peers.

Earnings and Valuation

This table compares Investment Technology Group and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Investment Technology Group $469.05 million -$25.91 million -19.31
Investment Technology Group Competitors $902.64 million $129.13 million 308.66

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

Volatility & Risk

Investment Technology Group has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Investment Technology Group’s peers have a beta of 1.20, indicating that their average share price is 20% more volatile than the S&P 500.

Summary

Investment Technology Group peers beat Investment Technology Group on 10 of the 15 factors compared.

About Investment Technology Group

Investment Technology Group, Inc. (ITG) is a financial technology company that helps brokers and asset managers improve returns for investors around the world. The Company operates through four segments: U.S. Operations, Canadian Operations, European Operations and Asia Pacific Operations. These four segments provide categories of products and services, such as Execution Services, Workflow Technology and Analytics. Execution Services includes self-directed trading using algorithms, smart routing and matching through POSIT in cash equities, futures and options trading and portfolio trading and high-touch trading desks providing execution expertise. Workflow Technology includes trade order and execution management software applications in addition to network connectivity. Analytics includes tools enabling portfolio managers and traders to improve pre-trade, real-time and post-trade execution performance; portfolio construction and optimization decisions, and securities valuation.

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