Head-To-Head Analysis: Rithm Capital (NYSE:RITM) & Lion Group (NASDAQ:LGHL)

Lion Group (NASDAQ:LGHL) and Rithm Capital (NYSE:RITM) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

This table compares Lion Group and Rithm Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lion Group	$9.39 million	0.42	-$4.96 million	N/A	N/A
Rithm Capital	$4.59 billion	1.13	$681.45 million	$1.09	8.55

Rithm Capital has higher revenue and earnings than Lion Group.

Analyst Ratings

This is a breakdown of current recommendations for Lion Group and Rithm Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lion Group	1	0	0	0	1.00
Rithm Capital	1	0	10	0	2.82

Rithm Capital has a consensus target price of $13.65, indicating a potential upside of 46.54%. Given Rithm Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Rithm Capital is more favorable than Lion Group.

Insider and Institutional Ownership

0.2% of Lion Group shares are owned by institutional investors. Comparatively, 44.9% of Rithm Capital shares are owned by institutional investors. 8.7% of Lion Group shares are owned by insiders. Comparatively, 0.6% of Rithm Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Lion Group has a beta of 2.74, indicating that its share price is 174% more volatile than the S&P 500. Comparatively, Rithm Capital has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lion Group	N/A	N/A	N/A
Rithm Capital	14.44%	19.48%	2.87%

Summary

Rithm Capital beats Lion Group on 10 of the 12 factors compared between the two stocks.

About Lion Group

Lion Group Holding Ltd., together with its subsidiaries, operates a trading platform for corporate clients, individual traders, and retail investors primarily in the People's Republic of China and Southeast Asia. Its trading platform offers a range of products and services comprising contracts for difference trading, over-the-counter stock options trading, futures and securities brokerage, and total return swap trading services through its Lion Brokers Pro app platform. The company's trading platform allows users to trade various futures products on futures exchanges worldwide, including the Chicago Mercantile Exchange, Singapore Exchange, the Hong Kong Futures Exchange, and Eurex Exchange; stocks listed on the New York Stock Exchange, Nasdaq and Hong Kong Stock Exchange; and the People's Republic of China stocks listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange that are eligible for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs. It markets its products mainly through search engines, social media, app stores, and third-party websites. Lion Group Holding Ltd. was founded in 2015 and is headquartered in Singapore.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.