Analyzing Raymond James Financial (NYSE:RJF) and TOP Financial Group (NASDAQ:TOP)

Raymond James Financial (NYSE:RJF) and TOP Financial Group (NASDAQ:TOP) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Earnings and Valuation

This table compares Raymond James Financial and TOP Financial Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Raymond James Financial	$14.92 billion	2.16	$2.07 billion	$10.39	15.39
TOP Financial Group	$8.04 million	5.69	$1.05 million	N/A	N/A

Raymond James Financial has higher revenue and earnings than TOP Financial Group.

Profitability

This table compares Raymond James Financial and TOP Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Raymond James Financial	13.99%	19.31%	2.74%
TOP Financial Group	N/A	N/A	N/A

Institutional & Insider Ownership

83.8% of Raymond James Financial shares are held by institutional investors. Comparatively, 0.3% of TOP Financial Group shares are held by institutional investors. 0.5% of Raymond James Financial shares are held by company insiders. Comparatively, 85.6% of TOP Financial Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Raymond James Financial and TOP Financial Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raymond James Financial	0	10	2	1	2.31
TOP Financial Group	0	0	0	0	0.00

Raymond James Financial currently has a consensus price target of $153.82, suggesting a potential downside of 3.79%. Given Raymond James Financial’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Raymond James Financial is more favorable than TOP Financial Group.

Volatility and Risk

Raymond James Financial has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, TOP Financial Group has a beta of -1.28, meaning that its share price is 228% less volatile than the S&P 500.

Summary

Raymond James Financial beats TOP Financial Group on 11 of the 13 factors compared between the two stocks.

About Raymond James Financial

Raymond James Financial, Inc., a financial holding company, through its subsidiaries, engages in the underwriting, distribution, trading, and brokerage of equity and debt securities, and the sale of mutual funds and other investment products in the United States, Canada, Europe, and internationally. The company operates through Private Client Group, Capital Markets, Asset Management, RJ Bank, and Other segments. The Private Client Group segment provides securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance products to their individual clients; and borrowing and lending of securities to and from other broker-dealers, financial institutions, and other counterparties. The Capital Markets segment offers securities brokerage, trading, and research services to institutions with a focus on sale of the United States and Canadian equities and fixed income products; and manages and participates in underwritings, merger and acquisition services, and public finance activities. The Asset Management segment engages in the operations of Eagle, the Eagle Family of Funds, Cougar, the asset management operations of Raymond James & Associates, trust services of Raymond James Trust, and other fee-based asset management programs. The RJ Bank segment provides corporate loans, SBL, tax-exempt loans, and residential loans. The Other segment engages in private equity activities, including various direct and third party private equity investments; and private equity funds. Raymond James Financial, Inc. was founded in 1962 and is based in St. Petersburg, Florida.

About TOP Financial Group

TOP Financial Group Limited, through its subsidiaries, operates as an online brokerage company in Hong Kong. It is involved in the trading of local and overseas equities, futures, and options products; and the provision of brokerage and value-added services, including trade order placement and execution, account management, and customer support services. The company provides a range of futures products, such as index futures, forex futures, agricultural product futures, energy futures, and precious metal futures. It also offers stock brokerage, options brokerage, consulting services, currency exchange services, structured note subscriber services, and margin financing services. The company was formerly known as Zhong Yang Financial Group Limited and changed its name to TOP Financial Group Limited in July 2022. TOP Financial Group Limited was founded in 2015 and is based in Hong Kong, Hong Kong. TOP Financial Group Limited is a subsidiary of Zhong Yang Holdings (BVI) Limited.