Charles Schwab (NYSE: SCHW) is one of 103 publicly-traded companies in the “INVEST BKRS/MGMT” industry, but how does it compare to its rivals? We will compare Charles Schwab to related businesses based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.
Risk and Volatility
Charles Schwab has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Charles Schwab’s rivals have a beta of 3.44, meaning that their average stock price is 244% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Charles Schwab and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Charles Schwab Competitors||671||3631||4242||187||2.45|
Charles Schwab presently has a consensus target price of $54.23, indicating a potential upside of 5.67%. As a group, “INVEST BKRS/MGMT” companies have a potential upside of 14.89%. Given Charles Schwab’s rivals higher possible upside, analysts clearly believe Charles Schwab has less favorable growth aspects than its rivals.
Charles Schwab pays an annual dividend of $0.40 per share and has a dividend yield of 0.8%. Charles Schwab pays out 24.8% of its earnings in the form of a dividend. As a group, “INVEST BKRS/MGMT” companies pay a dividend yield of 2.8% and pay out 59.6% of their earnings in the form of a dividend. Charles Schwab has raised its dividend for 2 consecutive years.
This table compares Charles Schwab and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Charles Schwab Competitors||12.59%||7.22%||7.90%|
Institutional and Insider Ownership
80.5% of Charles Schwab shares are owned by institutional investors. Comparatively, 52.2% of shares of all “INVEST BKRS/MGMT” companies are owned by institutional investors. 12.0% of Charles Schwab shares are owned by insiders. Comparatively, 17.1% of shares of all “INVEST BKRS/MGMT” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Charles Schwab and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Charles Schwab||$8.62 billion||$2.35 billion||31.88|
|Charles Schwab Competitors||$2.91 billion||$409.20 million||-21.30|
Charles Schwab has higher revenue and earnings than its rivals. Charles Schwab is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Charles Schwab beats its rivals on 9 of the 15 factors compared.
About Charles Schwab
The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor, retirement plan, and mutual fund clearing services. The Advisor Services segment provides custodial, trading, and support services; and retirement business and corporate brokerage retirement services. This segment provides brokerage accounts with cash management capabilities; third-party mutual funds, as well as proprietary mutual funds, plus mutual fund trading, and clearing services to broker-dealers; and exchange-traded funds (ETFs), including proprietary and third-party ETFs. It also offers advice solutions, such as managed portfolios of proprietary and third-party mutual funds and ETFs, separately managed accounts, customized personal advice for tailored portfolios, and specialized planning and portfolio management. In addition, this segment provides banking products and services, including checking and savings accounts, certificates of deposit, first lien residential real estate mortgage loans, home equity loans and lines of credit, and pledged asset lines; and trust services comprising trust custody services, personal trust reporting services, and administrative trustee services. The company serves individuals and institutional clients in the United States, the Commonwealth of Puerto Rico, England, Hong Kong, Singapore, and Australia. The Charles Schwab Corporation was founded in 1971 and is headquartered in San Francisco, California.
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