Head-To-Head Review: Nomura (NYSE:NMR) & Diamond Hill Investment Group (NASDAQ:DHIL)

Nomura (NYSE:NMR) and Diamond Hill Investment Group (NASDAQ:DHIL) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Nomura and Diamond Hill Investment Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nomura	0	2	0	0	2.00
Diamond Hill Investment Group	0	0	0	0	0.00

Insider and Institutional Ownership

15.1% of Nomura shares are held by institutional investors. Comparatively, 65.5% of Diamond Hill Investment Group shares are held by institutional investors. 0.0% of Nomura shares are held by insiders. Comparatively, 4.6% of Diamond Hill Investment Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Nomura and Diamond Hill Investment Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nomura	$31.11 billion	0.70	$2.25 billion	$0.83	8.84
Diamond Hill Investment Group	$151.10 million	2.57	$43.18 million	$17.58	8.08

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

Dividends

Nomura pays an annual dividend of $0.38 per share and has a dividend yield of 5.2%. Diamond Hill Investment Group pays an annual dividend of $6.00 per share and has a dividend yield of 4.2%. Nomura pays out 45.8% of its earnings in the form of a dividend. Diamond Hill Investment Group pays out 34.1% 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.

Volatility & Risk

Nomura has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Diamond Hill Investment Group has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Profitability

This table compares Nomura and Diamond Hill Investment Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nomura	8.06%	10.58%	0.65%
Diamond Hill Investment Group	31.71%	21.38%	14.72%

Summary

Diamond Hill Investment Group beats Nomura on 9 of the 14 factors compared between the two stocks.

About Nomura

Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. It operates through three segments: Retail, Investment Management, and Wholesale. The Retail segment offers various financial products and investment consultation services. The Investment Management segment engages in the management of funds, investment trusts, and other investment solutions; and provision of investment advisory, custodial, and administrative services. The Wholesale segment is involved in the research, sale, trading, agency execution, and market-making of fixed income and equity-related products. This segment also engages in underwriting various securities and other financial instruments, such as various classes of shares, convertible and exchangeable securities, investment grade and high yield debts, sovereign and emerging market debts, structured securities, and other securities; arranging private placements, as well as other capital raising activities; and the provision of financial advisory services on business transactions comprising mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions. The company was formerly known as The Nomura Securities Co., Ltd. and changed its name to Nomura Holdings, Inc. in October 2001. Nomura Holdings, Inc. was incorporated in 1925 and is headquartered in Tokyo, Japan.

About Diamond Hill Investment Group

Diamond Hill Investment Group, Inc., through its subsidiary, Diamond Hill Capital Management, Inc., provides investment advisory and fund administration services in the United States. It offers investment advisory and related services to clients through pooled vehicles, such as private fund; separately managed accounts; collective investment trusts; and other pooled vehicles, including sub-advised funds and model delivery programs. The company also provides fund administration services comprising portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the funds, as well as oversight of back-office service providers, which include the custodian, fund accountant, and transfer agent. Diamond Hill Investment Group, Inc. was incorporated in 1990 and is based in Columbus, Ohio.