Comparing Bank of America (NYSE:BAC) and Siebert Financial (NASDAQ:SIEB)

Bank of America (NYSE:BAC) and Siebert Financial (NASDAQ:SIEB) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Earnings and Valuation

This table compares Bank of America and Siebert Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of America	$104.52 billion	3.32	$27.13 billion	$3.42	13.72
Siebert Financial	$83.90 million	1.86	$13.29 million	$0.46	8.17

Bank of America has higher revenue and earnings than Siebert Financial. Siebert Financial is trading at a lower price-to-earnings ratio than Bank of America, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Bank of America and Siebert Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of America	0	5	17	0	2.77
Siebert Financial	0	0	0	0	0.00

Bank of America presently has a consensus price target of $50.1250, suggesting a potential upside of 6.85%. Given Bank of America’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Bank of America is more favorable than Siebert Financial.

Volatility and Risk

Bank of America has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Siebert Financial has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Bank of America and Siebert Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of America	14.81%	10.25%	0.84%
Siebert Financial	11.00%	10.78%	1.73%

Insider and Institutional Ownership

70.7% of Bank of America shares are owned by institutional investors. Comparatively, 1.5% of Siebert Financial shares are owned by institutional investors. 0.3% of Bank of America shares are owned by company insiders. Comparatively, 47.0% of Siebert Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Bank of America beats Siebert Financial on 10 of the 14 factors compared between the two stocks.

About Bank of America

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, non-interest and interest-bearing checking accounts, and investment accounts and products; credit and debit cards; residential mortgages, and home equity loans; and direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, short-term investing options, and merchant services; working capital management solutions; debt and equity underwriting and distribution, and merger-related and other advisory services; and fixed-income and equity research, and certain market-based services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina.

About Siebert Financial

Siebert Financial Corp., through its subsidiaries, engages in the retail brokerage and investment advisory businesses in the United States and Internationally. It offers self-directed trading, market making and fixed income investment, stock borrow, stock loan, equity compensation plans, wealth management, and financial advisory services; independent retail execution services; and retail customer services. The company also offers self-directed retirement accounts, as well as lends customers a portion of the market value of marginable securities held in the customer's account. In addition, the company provides data technology platform that offers various services, such as email and messaging, market data systems and third party trading systems, business productivity tools, and customer relationship management systems. Further, it offers a Robo-Advisor platform that provides clients with an automated wealth management solution; and various insurance products, such as fixed annuities, personal insurance, property and casualty insurance, natural disaster insurance, and life and disability. Siebert Financial Corp. was incorporated in 1934 and is headquartered in Miami Beach, Florida.