Credit Suisse Group (CS) versus Cowen Group (COWN) Head to Head Comparison

Credit Suisse Group (NYSE: CS) and Cowen Group (NASDAQ:COWN) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Earnings & Valuation

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This table compares Credit Suisse Group and Cowen Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Credit Suisse Group $31.90 billion 1.31 -$999.02 million $0.54 30.31
Cowen Group $658.78 million 0.65 -$60.88 million N/A N/A

Cowen Group has lower revenue, but higher earnings than Credit Suisse Group.

Analyst Recommendations

This is a summary of current recommendations and price targets for Credit Suisse Group and Cowen Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Credit Suisse Group 1 1 10 0 2.75
Cowen Group 0 1 1 0 2.50

Cowen Group has a consensus target price of $17.00, suggesting a potential upside of 16.84%. Given Cowen Group’s higher possible upside, analysts clearly believe Cowen Group is more favorable than Credit Suisse Group.

Risk & Volatility

Credit Suisse Group has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Cowen Group has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Insider and Institutional Ownership

3.0% of Credit Suisse Group shares are held by institutional investors. Comparatively, 85.8% of Cowen Group shares are held by institutional investors. 4.9% of Cowen Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Credit Suisse Group and Cowen Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Credit Suisse Group -3.14% 3.24% 0.18%
Cowen Group -9.24% 1.99% 0.59%

Dividends

Credit Suisse Group pays an annual dividend of $0.72 per share and has a dividend yield of 4.4%. Cowen Group does not pay a dividend. Credit Suisse Group pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Credit Suisse Group beats Cowen Group on 9 of the 15 factors compared between the two stocks.

About Credit Suisse Group

Credit Suisse Group AG (Credit Suisse) is a financial services company. The Company’s segments include Swiss Universal Bank, International Wealth Management, Asia Pacific, Global Markets, Investment Banking & Capital Markets, Strategic Resolution Unit and Corporate Center. It offers a range of private banking and wealth management solutions to its clients in its Swiss Universal Bank, International Wealth Management and Asia Pacific divisions. It offers a range of investment advice and discretionary asset management services. It offers a range of investment services, including macroeconomic, equity, bond, commodity and foreign-exchange analysis, as well as research on the economy. Its investment advice covers a range of services from portfolio consulting to advising on individual investments. The Company offers its clients portfolio and risk management solutions, including managed investment products.

About Cowen Group

Cowen Inc., formerly Cowen Group, Inc., is a financial services company. The Company provides alternative investment management, investment banking, research, sales and trading, and prime brokerage services. It operates through two segments: alternative investment and broker-dealer. The alternative investment segment includes private equity structures, registered investment companies and listed investment vehicles. The broker-dealer segment offers industry focused investment banking for growth-oriented companies, including advisory and global capital markets origination and domain knowledge-driven research, and a sales and trading platform for institutional investors. Its alternative investment platform, which operates under the Ramius name, offers investment products and solutions across the liquidity spectrum to institutional and private clients. Ramius offers investors access to strategies to meet their specific needs, including long/short equity and event driven equity.

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