GAMCO Investors (NYSE:GAMI – Get Rating) and Nomura (NYSE:NMR – Get Rating) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Risk and Volatility
GAMCO Investors has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Nomura has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.
Dividends
GAMCO Investors pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. Nomura pays an annual dividend of $0.06 per share and has a dividend yield of 1.6%. GAMCO Investors pays out 6.4% of its earnings in the form of a dividend. Nomura pays out 21.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GAMCO Investors | $258.75 million | 1.90 | $65.56 million | $2.51 | 7.67 |
| Nomura | $12.15 billion | 0.95 | $1.27 billion | $0.28 | 13.71 |
Nomura has higher revenue and earnings than GAMCO Investors. GAMCO Investors is trading at a lower price-to-earnings ratio than Nomura, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and price targets for GAMCO Investors and Nomura, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GAMCO Investors | 0 | 0 | 0 | 0 | N/A |
| Nomura | 0 | 1 | 0 | 0 | 2.00 |
Institutional and Insider Ownership
30.5% of GAMCO Investors shares are owned by institutional investors. Comparatively, 1.0% of Nomura shares are owned by institutional investors. 81.2% of GAMCO Investors shares are owned by insiders. Comparatively, 0.0% of Nomura shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares GAMCO Investors and Nomura’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GAMCO Investors | 25.34% | 57.64% | 28.82% |
| Nomura | 5.67% | 3.63% | 0.24% |
Summary
GAMCO Investors beats Nomura on 9 of the 13 factors compared between the two stocks.
About GAMCO Investors
GAMCO Investors, Inc. operates as a holding company, which engages in the provision of investment advisory and asset management services. It offers investment advisory principally through Gabelli Funds and GAMCO Asset, which manages separate accounts for high net worth individuals, institutions, and qualified pension plans, and through its role as advisor to a family of mutual funds. The company was founded by Mario J. Gabelli in 1976 and is headquartered in Rye, NY.
About Nomura
Nomura Holdings, Inc. operates as a holding company which provides the investment and financial services. It operates through the following segments: Retail, Asset Management, Wholesale and Merchant Banking. The Retail segment includes investment consultation services, distribution of trust certificates, and management of insurance agencies. The Asset Management segment offers portfolio and trust management, and provides investment advisory services for pension funds. The Wholesale segment consists of global markets and investment banking services such as trading of bonds, stocks, foreign exchange, and derivatives, and the underwriting of debt, equity, and other financial instruments. The Merchant Banking offers equity to clients as a solution for business reorganizations and revitalizations, business succession and management buyouts. The company was founded by Tokushichi Nomura on December 25, 1925 and is headquartered in Tokyo, Japan.
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