China Finance Online (NASDAQ:JRJC) and Oppenheimer (NYSE:OPY) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares China Finance Online and Oppenheimer’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Finance Online $42.62 million 0.55 -$36.73 million N/A N/A
Oppenheimer $920.34 million 0.38 $22.81 million N/A N/A

Oppenheimer has higher revenue and earnings than China Finance Online.

Risk and Volatility

China Finance Online has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, Oppenheimer has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Institutional and Insider Ownership

2.3% of China Finance Online shares are held by institutional investors. Comparatively, 48.2% of Oppenheimer shares are held by institutional investors. 30.4% of China Finance Online shares are held by insiders. Comparatively, 25.9% of Oppenheimer shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares China Finance Online and Oppenheimer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Finance Online -49.35% -61.94% -25.10%
Oppenheimer 4.27% 7.86% 1.71%

Analyst Recommendations

This is a breakdown of current ratings for China Finance Online and Oppenheimer, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Finance Online 0 0 0 0 N/A
Oppenheimer 0 0 0 0 N/A

Dividends

Oppenheimer pays an annual dividend of $0.44 per share and has a dividend yield of 1.7%. China Finance Online does not pay a dividend.

Summary

Oppenheimer beats China Finance Online on 7 of the 10 factors compared between the two stocks.

China Finance Online Company Profile

China Finance Online Co. Limited provides Web-based financial services in the People's Republic of China and Hong Kong. The company operates through three segments: Commodities Brokerage Services; Online Financial Information and Advisory Service, and Other Related Services; and Hong Kong Brokerage Services. It provides online access to securities and commodities trading services, wealth management products, and securities investment advisory services to retail investors; and financial database and analytics to institutional investors, including financial, research, academic, and regulatory institutions, as well as financial software products. The company is involved in the operation of Yinglibao, an Internet-based financial platform that integrates wealth management solutions and mutual fund distribution; JRJ mobile app for financial information, securities trading, investment advisory, and wealth management; jrj.com.cn to provide access for wealth management solutions and mutual fund distribution; and jrj.com, a financial information Website. In addition, it provides commodities brokerage services; securities and futures contracts brokerage and related services to its customers, who invest in stocks listed on Hong Kong Stock Exchanges and Clearing Limited; information services; and insurance brokerage services. The company offers its products and services to individual investors managing their own money; professional investors, such as institutional investors managing large sums of money on behalf of their clients and high net worth individuals; and other financial professionals, including investment bankers, stock analysts and financial reporters, and middle class individuals. The company was incorporated in 1998 and is based in Beijing, the People's Republic of China.

Oppenheimer Company Profile

Oppenheimer Holdings Inc., through its subsidiaries, provides middle-market investment bank and full service broker-dealer products and services. The company offers full-service brokerage services covering exchange-traded and over-the-counter corporate equity and debt securities, money market instruments, exchange-traded options and futures contracts, municipal bonds, mutual funds, and unit investment trusts; financial and wealth planning services; and margin lending services. It also provides asset management services, including separately managed accounts, mutual fund managed accounts, discretionary portfolio management programs, fee-based non-discretionary investment advisory services, alternative investments, portfolio enhancement programs, investment advisory services, and institutional taxable fixed income portfolio management services. In addition, the company offers investment banking services, including strategic advisory services and capital markets products; and institutional equity sales and trading, equity research, equity derivatives and index options, convertible bonds, and event driven sales and trading services. Further, it provides institutional fixed income sales and trading, fixed income research, public finance, and municipal trading services; repurchase agreements and securities lending services; and proprietary trading and investment activities. Additionally, the company offers underwritings, market-making, and trust services. It serves high-net-worth individuals and families, corporate executives, small and mid-sized businesses, institutions and investment advisers, financial sponsors, and domestic and international investors in the Americas, Europe, the Middle East, and Asia. The company was founded in 1881 and is headquartered in New York, New York.

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