Critical Survey: Emergent Capital (OTCMKTS:EMGCQ) versus Virtu Financial (NASDAQ:VIRT)
by Mitch Edgeman · The Markets DailyVirtu Financial (NASDAQ:VIRT – Get Free Report) and Emergent Capital (OTCMKTS:EMGCQ – Get 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 Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Virtu Financial | 1 | 4 | 2 | 0 | 2.14 |
| Emergent Capital | 0 | 0 | 0 | 0 | 0.00 |
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 Margins | Return on Equity | Return on Assets | |
| Virtu Financial | 10.43% | 32.08% | 3.09% |
| Emergent Capital | N/A | N/A | N/A |
Valuation and Earnings
This table compares Virtu Financial and Emergent Capital”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Virtu Financial | $3.63 billion | 1.68 | $276.42 million | $5.13 | 7.76 |
| Emergent Capital | N/A | N/A | N/A | N/A | N/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
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
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.