BlackRock (OTCMKTS: GLCH) and Gleacher & Company Inc (OTCMKTS:GLCH) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Volatility & Risk

BlackRock has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Gleacher & Company Inc has a beta of -0.12, indicating that its share price is 112% less volatile than the S&P 500.

Institutional & Insider Ownership

82.9% of BlackRock shares are held by institutional investors. 1.9% of BlackRock shares are held by insiders. Comparatively, 29.6% of Gleacher & Company Inc shares are held 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 BlackRock and Gleacher & Company Inc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BlackRock 38.97% 13.20% 1.95%
Gleacher & Company Inc N/A N/A N/A

Valuation & Earnings

This table compares BlackRock and Gleacher & Company Inc’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BlackRock $12.49 billion 6.08 $4.97 billion $22.60 21.06
Gleacher & Company Inc N/A N/A N/A N/A N/A

BlackRock has higher revenue and earnings than Gleacher & Company Inc.

Dividends

BlackRock pays an annual dividend of $12.52 per share and has a dividend yield of 2.6%. Gleacher & Company Inc does not pay a dividend. BlackRock pays out 55.4% of its earnings in the form of a dividend. BlackRock has raised its dividend for 8 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for BlackRock and Gleacher & Company Inc, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackRock 0 2 9 0 2.82
Gleacher & Company Inc 0 0 0 0 N/A

BlackRock currently has a consensus target price of $592.45, suggesting a potential upside of 24.45%. Given BlackRock’s higher probable upside, equities analysts clearly believe BlackRock is more favorable than Gleacher & Company Inc.

Summary

BlackRock beats Gleacher & Company Inc on 10 of the 12 factors compared between the two stocks.

BlackRock Company Profile

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California.

Gleacher & Company Inc Company Profile

Gleacher & Company, Inc. went out of business. The firm provides strategic and financial advisory services to corporate and institutional clients. It operates through Investment Banking, MBS & Rates, and Credit Products segments. It also invests and manages a fund that holds investments in privately held companies; and offers residential mortgage lending. Gleacher & Company, Inc. was founded in 1952 and is headquartered in Albany, New York.

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