Critical Survey: Emergent Capital (OTCMKTS:EMGCQ) versus Virtu Financial (NASDAQ:VIRT)

by · The Markets Daily

Virtu Financial (NASDAQ:VIRTGet Free Report) and Emergent Capital (OTCMKTS:EMGCQGet Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Virtu Financial and Emergent Capital, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Virtu Financial14202.14
Emergent Capital00000.00

Virtu Financial presently has a consensus price target of $43.00, indicating a potential upside of 8.02%. Given Virtu Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Virtu Financial is more favorable than Emergent Capital.

Profitability

This table compares Virtu Financial and Emergent Capital’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Virtu Financial10.43%32.08%3.09%
Emergent CapitalN/AN/AN/A

Valuation and Earnings

This table compares Virtu Financial and Emergent Capital”s revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Virtu Financial$3.63 billion1.68$276.42 million$5.137.76
Emergent CapitalN/AN/AN/AN/AN/A

Virtu Financial has higher revenue and earnings than Emergent Capital.

Institutional & Insider Ownership

45.8% of Virtu Financial shares are held by institutional investors. 47.2% of Virtu Financial shares are held by company insiders. Comparatively, 48.9% of Emergent Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Virtu Financial beats Emergent Capital on 8 of the 9 factors compared between the two stocks.

About Virtu Financial

(Get Free Report)

Virtu Financial, Inc. operates as a financial services company in the United States, Asia Pacific, Canada, EMEA, Ireland, and internationally. The company operates through two segments, Market Making and Execution Services. Its product includes offerings in execution, liquidity sourcing, analytics and broker-neutral, capital markets, and multi-dealer platforms in workflow technology. The company's product allow its clients to trade on various venues across 50 countries and in various asset classes, including global equities, ETFs, options, foreign exchange, futures, fixed income, cryptocurrencies, and myriad other commodities. Its multi-asset analytics platform provides a range of pre- and post-trade services, data products, and compliance tools for clients to invest, trade, and manage risk across global markets. The company was founded in 2008 and is headquartered in New York, New York.

About Emergent Capital

(Get Free Report)

Emergent Capital, Inc., a specialty finance company, invests in life settlements. As of August 31, 2020, it owned a portfolio of 500 life insurance policies. The company was formerly known as Imperial Holdings, Inc. and changed its name to Emergent Capital, Inc. in September 2015. The company was founded in 2006 and is based in Boca Raton, Florida. On October 15, 2020, Emergent Capital, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.