Blackstone (NYSE:BX) & Interactive Brokers Group (NASDAQ:IBKR) Head-To-Head Review

Interactive Brokers Group (NASDAQ:IBKR – Get Free Report) and Blackstone (NYSE:BX – Get Free Report) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Institutional & Insider Ownership

23.8% of Interactive Brokers Group shares are owned by institutional investors. Comparatively, 70.0% of Blackstone shares are owned by institutional investors. 2.8% of Interactive Brokers Group shares are owned by company insiders. Comparatively, 1.0% of Blackstone shares are owned 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.

Valuation & Earnings

This table compares Interactive Brokers Group and Blackstone”s gross revenue, earnings per share (EPS) and valuation.

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

Profitability

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Interactive Brokers Group and Blackstone, as reported by MarketBeat.

Interactive Brokers Group currently has a consensus target price of $98.90, suggesting a potential upside of 8.24%. Blackstone has a consensus target price of $149.43, suggesting a potential upside of 16.30%. Given Blackstone’s higher possible upside, analysts plainly believe Blackstone is more favorable than Interactive Brokers Group.

Dividends

Interactive Brokers Group pays an annual dividend of $0.35 per share and has a dividend yield of 0.4%. Blackstone pays an annual dividend of $5.16 per share and has a dividend yield of 4.0%. Interactive Brokers Group pays out 14.0% of its earnings in the form of a dividend. Blackstone pays out 115.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Interactive Brokers Group has raised its dividend for 2 consecutive years.

Risk and Volatility

Interactive Brokers Group has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Blackstone has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.

Summary

Blackstone beats Interactive Brokers Group on 11 of the 18 factors compared between the two stocks.

About Interactive Brokers Group

(Get Free Report)

Interactive Brokers Group, Inc. operates as an automated electronic broker worldwide. The company engages in the execution, clearance, and settlement of trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange traded funds (ETFs), precious metals, and cryptocurrencies. It also custodies and services accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. In addition, the company offers custody, prime brokerage, securities, and margin lending services. It serves institutional and individual customers through electronic exchanges and market centers. The company was founded in 1977 and is headquartered in Greenwich, Connecticut.

About Blackstone

(Get Free Report)

Blackstone Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The firm typically invests in early-stage companies. It also provide capital markets services. The real estate segment specializes in opportunistic, core+ investments as well as debt investment opportunities collateralized by commercial real estate, and stabilized income-oriented commercial real estate across North America, Europe and Asia. The firm's corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts,special situations, distressed mortgage loans, mid-cap buyouts, buy and build platforms, which involves multiple acquisitions behind a single management team and platform, and growth equity/development projects involving significant majority stakes in portfolio companies and minority investments in operating companies, shipping, real estate, corporate or consumer loans, and alternative energy greenfield development projects in energy and power, property, dislocated markets, shipping opportunities, financial institution breakups, re-insurance, and improving freight mobility, financial services, healthcare, life sciences, infrastructure, enterprise tech and consumer, as well as consumer technologies. The firm considers investment in Asia and Latin America. It seeks to invest between $0.25 million and $900 million per transaction. It invests in companies with enterprise value between $500 million and $5000 million. It has a three year investment period. Its hedge fund business manages a broad range of commingled and customized fund solutions and its credit business focuses on loans, and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity. Blackstone Inc. was founded in 1985 and is headquartered in New York, New York with additional offices across Asia, Europe, North America and Central America.