Head to Head Analysis: Binah Capital Group (NASDAQ:BCG) & Noah (NYSE:NOAH)

Noah (NYSE:NOAH) and Binah Capital Group (NASDAQ:BCG) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Valuation and Earnings

This table compares Noah and Binah Capital Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Noah	$356.33 million	2.04	$65.14 million	$1.29	8.41
Binah Capital Group	$168.90 million	0.26	-$4.56 million	$0.03	89.33

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

Profitability

This table compares Noah and Binah Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Noah	25.99%	7.23%	6.12%
Binah Capital Group	0.58%	509.27%	1.55%

Risk & Volatility

Noah has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Noah and Binah Capital Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Noah	1	2	1	0	2.00
Binah Capital Group	1	0	0	0	1.00

Noah presently has a consensus price target of $10.75, indicating a potential downside of 0.87%. Given Noah’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Noah is more favorable than Binah Capital Group.

Institutional & Insider Ownership

42.7% of Noah shares are held by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are held by institutional investors. 47.2% of Noah shares are held by insiders. Comparatively, 1.9% of Binah Capital Group 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.

Summary

Noah beats Binah Capital Group on 12 of the 14 factors compared between the two stocks.

About Noah

Noah Holdings Limited, together with its subsidiaries, operates as a wealth and asset management service provider with the focus on investment and asset allocation services for high net worth individuals and enterprises in Mainland of China, Hong Kong, and internationally. It operates through three segments: Wealth Management, Asset Management, and Other Services. The company offers investment products, including domestic and overseas mutual fund products, private secondary products, and other products; customized value-added financial services, such as investor education and trust services, as well as insurance brokerage services; and insurance products. It also provides onshore and offshore private equity, real estate, public securities, multi-strategy, and other investment products, as well as lending services. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.