X vs. IAG, IGM, ONEX, DFY, ELF, EQB, GSY, CWB, CIX, and BAM
Should you be buying TMX Group stock or one of its competitors? The main competitors of TMX Group include iA Financial (IAG), IGM Financial (IGM), Onex (ONEX), Definity Financial (DFY), E-L Financial (ELF), EQB (EQB), goeasy (GSY), Canadian Western Bank (CWB), CI Financial (CIX), and Brookfield Asset Management (BAM). These companies are all part of the "financial services" sector.
TMX Group (TSE:X) and iA Financial (TSE:IAG) are both financial services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability, media sentiment, community ranking and earnings.
iA Financial received 16 more outperform votes than TMX Group when rated by MarketBeat users. Likewise, 51.43% of users gave iA Financial an outperform vote while only 44.89% of users gave TMX Group an outperform vote.
TMX Group has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, iA Financial has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.
iA Financial has higher revenue and earnings than TMX Group. iA Financial is trading at a lower price-to-earnings ratio than TMX Group, indicating that it is currently the more affordable of the two stocks.
TMX Group has a net margin of 12.28% compared to iA Financial's net margin of 9.95%. iA Financial's return on equity of 11.14% beat TMX Group's return on equity.
TMX Group pays an annual dividend of C$0.71 per share and has a dividend yield of 1.9%. iA Financial pays an annual dividend of C$3.28 per share and has a dividend yield of 3.8%. TMX Group pays out 55.5% of its earnings in the form of a dividend. iA Financial pays out 43.9% 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. iA Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
TMX Group currently has a consensus price target of C$39.38, indicating a potential upside of 5.82%. iA Financial has a consensus price target of C$74.38, indicating a potential downside of 12.92%. Given TMX Group's higher possible upside, analysts plainly believe TMX Group is more favorable than iA Financial.
In the previous week, TMX Group had 23 more articles in the media than iA Financial. MarketBeat recorded 34 mentions for TMX Group and 11 mentions for iA Financial. TMX Group's average media sentiment score of 0.38 beat iA Financial's score of 0.24 indicating that TMX Group is being referred to more favorably in the media.
54.5% of TMX Group shares are owned by institutional investors. Comparatively, 47.1% of iA Financial shares are owned by institutional investors. 5.6% of TMX Group shares are owned by company insiders. Comparatively, 0.2% of iA Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
iA Financial beats TMX Group on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding X and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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