Contrasting Siebert Financial (NASDAQ:SIEB) and ONEX (OTCMKTS:ONEXF)
by Michael Walen · The Markets DailySiebert Financial (NASDAQ:SIEB – Get Free Report) and ONEX (OTCMKTS:ONEXF – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.
Profitability
This table compares Siebert Financial and ONEX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Siebert Financial | -1.07% | -1.25% | -0.15% |
| ONEX | 63.83% | 5.24% | 4.21% |
Insider & Institutional Ownership
1.5% of Siebert Financial shares are held by institutional investors. Comparatively, 0.7% of ONEX shares are held by institutional investors. 43.0% of Siebert Financial shares are held by company 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.
Analyst Recommendations
This is a summary of recent recommendations for Siebert Financial and ONEX, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Siebert Financial | 1 | 0 | 0 | 0 | 1.00 |
| ONEX | 0 | 2 | 3 | 0 | 2.60 |
Valuation and Earnings
This table compares Siebert Financial and ONEX”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Siebert Financial | $94.20 million | 0.91 | $5.12 million | ($0.03) | -67.33 |
| ONEX | $899.00 million | 5.95 | $617.00 million | $6.68 | 10.50 |
ONEX has higher revenue and earnings than Siebert Financial. Siebert Financial is trading at a lower price-to-earnings ratio than ONEX, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Siebert Financial has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, ONEX has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.
Summary
ONEX beats Siebert Financial on 11 of the 13 factors compared between the two stocks.
About Siebert Financial
Siebert Financial Corp., through its subsidiaries, engages in the retail brokerage and investment advisory businesses in the United States and Internationally. It offers self-directed trading, market making and fixed income investment, stock borrow, stock loan, equity compensation plans, wealth management, and financial advisory services; independent retail execution services; and retail customer services. The company also offers self-directed retirement accounts, as well as lends customers a portion of the market value of marginable securities held in the customer's account. In addition, the company provides data technology platform that offers various services, such as email and messaging, market data systems and third party trading systems, business productivity tools, and customer relationship management systems. Further, it offers a Robo-Advisor platform that provides clients with an automated wealth management solution; and various insurance products, such as fixed annuities, personal insurance, property and casualty insurance, natural disaster insurance, and life and disability. Siebert Financial Corp. was incorporated in 1934 and is headquartered in Miami Beach, Florida.
About ONEX
Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions. The firm makes investments in buyouts, large- middle market, large-cap, mid-cap, and small-cap market and distressed companies. It also invests in recapitalization, growth capital, corporate carve-outs of subsidiaries and mission-critical supply divisions from multinational corporations, operational restructurings of undervalued businesses, and builds up. The firm seeks to invest in technology, electronics manufacturing services, industrial, aerospace, healthcare, retail, restaurants, industrials products, customer care services, metal services, building products, entertainment, gaming, cabinetry products, commercial vehicles, commercial and investment banking, financial services, commercial and multi-unit residential real estate. It invests in global businesses headquartered in North America, including United States and Canada, or Europe. The firm seeks to invest between $125 million and $1 billion in companies that have minimum revenues of $300 million. It does not consider size if the company is in an industry in which the firm already has presence. The firm seeks to make direct as well as co-investments through managed private equity, real estate and credit funds. It seeks to acquire a control position in its portfolio companies. Onex Corporation was founded in 1984 and is based in Toronto, Canada with additional offices in New York, New York; Englewood Cliffs, New Jersey; Boston, Massachusetts and London, United Kingdom.