Litigation Capital Management (LIT) Competitors

Equals Group (LON:EQLS) and Litigation Capital Management (LON:LIT) are both small-cap financial services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, media sentiment, institutional ownership and valuation.

Which has preferable earnings & valuation, EQLS or LIT?

Litigation Capital Management has higher revenue and earnings than Equals Group. Equals Group is trading at a lower price-to-earnings ratio than Litigation Capital Management, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equals Group	£112.32M	0.00	£8.27M	£4.34	N/A
Litigation Capital Management	£204.77M	0.33	£26.20M	£5.83	5.14

Does the media favor EQLS or LIT?

In the previous week, Litigation Capital Management had 2 more articles in the media than Equals Group. MarketBeat recorded 2 mentions for Litigation Capital Management and 0 mentions for Equals Group. Equals Group's average media sentiment score of 0.00 beat Litigation Capital Management's score of -0.05 indicating that Equals Group is being referred to more favorably in the media.

Company	Overall Sentiment
Equals Group	Neutral
Litigation Capital Management	Neutral

Which has more risk & volatility, EQLS or LIT?

Equals Group has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Litigation Capital Management has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500.

Do analysts rate EQLS or LIT?

Litigation Capital Management has a consensus target price of GBX 182, indicating a potential upside of 506.67%. Given Litigation Capital Management's stronger consensus rating and higher possible upside, analysts plainly believe Litigation Capital Management is more favorable than Equals Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equals Group	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00
Litigation Capital Management	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00

Do insiders and institutionals hold more shares of EQLS or LIT?

51.3% of Equals Group shares are held by institutional investors. Comparatively, 23.3% of Litigation Capital Management shares are held by institutional investors. 29.9% of Equals Group shares are held by insiders. Comparatively, 19.5% of Litigation Capital Management shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Is EQLS or LIT more profitable?

Litigation Capital Management has a net margin of 12.80% compared to Equals Group's net margin of 7.36%. Equals Group's return on equity of 13.60% beat Litigation Capital Management's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Equals Group	7.36%	13.60%	8.11%
Litigation Capital Management	12.80%	6.79%	8.32%

Is EQLS or LIT a better dividend stock?

Equals Group pays an annual dividend of GBX 2 per share. Litigation Capital Management pays an annual dividend of GBX 1 per share and has a dividend yield of 3.3%. Equals Group pays out 46.1% of its earnings in the form of a dividend. Litigation Capital Management pays out 17.1% 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. Litigation Capital Management is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Litigation Capital Management beats Equals Group on 11 of the 17 factors compared between the two stocks.