SII vs. CIX, FIH.U, UNC, CVG, GCG.A, SEC, CGI, DFN, FSZ, and AGF.B
Should you be buying Sprott stock or one of its competitors? The main competitors of Sprott include CI Financial (CIX), Fairfax India (FIH.U), United Co.s (UNC), Clairvest Group (CVG), Guardian Capital Group (GCG.A), Senvest Capital (SEC), Canadian General Investments (CGI), Dividend 15 Split (DFN), Fiera Capital (FSZ), and AGF Management (AGF.B). These companies are all part of the "asset management" industry.
Sprott (TSE:SII) and CI Financial (TSE:CIX) are both financial services companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, community ranking, media sentiment, profitability, dividends, valuation, analyst recommendations and institutional ownership.
CI Financial received 125 more outperform votes than Sprott when rated by MarketBeat users. However, 60.04% of users gave Sprott an outperform vote while only 58.55% of users gave CI Financial an outperform vote.
Sprott currently has a consensus target price of C$63.50, indicating a potential upside of 3.61%. CI Financial has a consensus target price of C$19.56, indicating a potential upside of 38.20%. Given CI Financial's stronger consensus rating and higher probable upside, analysts plainly believe CI Financial is more favorable than Sprott.
Sprott has a net margin of 26.79% compared to CI Financial's net margin of -5.55%. Sprott's return on equity of 14.92% beat CI Financial's return on equity.
37.9% of Sprott shares are held by institutional investors. Comparatively, 11.8% of CI Financial shares are held by institutional investors. 18.2% of Sprott shares are held by insiders. Comparatively, 14.0% of CI Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Sprott pays an annual dividend of C$1.36 per share and has a dividend yield of 2.2%. CI Financial pays an annual dividend of C$0.80 per share and has a dividend yield of 5.7%. Sprott pays out 56.9% of its earnings in the form of a dividend. CI Financial pays out -70.8% 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. CI Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
In the previous week, Sprott's average media sentiment score of 0.34 beat CI Financial's score of 0.00 indicating that Sprott is being referred to more favorably in the media.
Sprott has higher earnings, but lower revenue than CI Financial. CI Financial is trading at a lower price-to-earnings ratio than Sprott, indicating that it is currently the more affordable of the two stocks.
Sprott has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, CI Financial has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.
Summary
Sprott beats CI Financial on 11 of the 20 factors compared between the two stocks.
This chart shows the number of new MarketBeat users adding SII 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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