Reviewing Gleacher & Company Inc (GLCH) and TD Ameritrade (AMTD)

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Gleacher & Company Inc (NASDAQ: AMTD) and TD Ameritrade (NASDAQ:AMTD) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares Gleacher & Company Inc and TD Ameritrade’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gleacher & Company Inc N/A N/A N/A
TD Ameritrade 24.42% 21.71% 4.26%

Insider & Institutional Ownership

91.7% of TD Ameritrade shares are held by institutional investors. 29.6% of Gleacher & Company Inc shares are held by company insiders. Comparatively, 0.4% of TD Ameritrade shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gleacher & Company Inc and TD Ameritrade, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gleacher & Company Inc 0 0 0 0 N/A
TD Ameritrade 0 5 13 0 2.72

TD Ameritrade has a consensus target price of $65.62, indicating a potential upside of 10.45%. Given TD Ameritrade’s higher probable upside, analysts plainly believe TD Ameritrade is more favorable than Gleacher & Company Inc.

Dividends

TD Ameritrade pays an annual dividend of $0.84 per share and has a dividend yield of 1.4%. Gleacher & Company Inc does not pay a dividend. TD Ameritrade pays out 45.7% of its earnings in the form of a dividend. TD Ameritrade has increased its dividend for 8 consecutive years.

Earnings & Valuation

This table compares Gleacher & Company Inc and TD Ameritrade’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gleacher & Company Inc N/A N/A N/A N/A N/A
TD Ameritrade $3.68 billion 9.17 $872.00 million $1.84 32.29

TD Ameritrade has higher revenue and earnings than Gleacher & Company Inc.

Risk and Volatility

Gleacher & Company Inc has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500. Comparatively, TD Ameritrade has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Summary

TD Ameritrade beats Gleacher & Company Inc on 10 of the 12 factors compared between the two stocks.

About Gleacher & Company Inc

Gleacher & Company, Inc. went out of business. The firm provides strategic and financial advisory services to corporate and institutional clients. It operates through Investment Banking, MBS & Rates, and Credit Products segments. It also invests and manages a fund that holds investments in privately held companies; and offers residential mortgage lending. Gleacher & Company, Inc. was founded in 1952 and is headquartered in Albany, New York.

About TD Ameritrade

TD Ameritrade Holding Corporation provides securities brokerage and related technology-based financial services to retail investors, traders, and independent registered investment advisors (RIAs) in the United States. Its products and services include tdameritrade.com, a Web platform for self-directed retail investors; Trade Architect, a Web-based platform for investors and traders to identify opportunities and stay informed; thinkorswim, a desktop platform for traders; and TD Ameritrade Mobile, which allows on-the-go investors and traders to trade and monitor accounts. The company also offers TD Ameritrade Institutional that provides brokerage and custody services to approximately 6,000 independent RIAs and their clients; TD Ameritrade Education, which allows investor education for stocks, options, income investing, and portfolio management; TD Ameritrade's Goal Planning that offers investment consulting and planning services; Selective Portfolios, an advisory service, which develops portfolios of exchange-traded funds (ETFs) and mutual funds; AdvisorDirect, a national referral service for investors; TD Ameritrade Singapore Pte. Ltd. that enables retail investors in Singapore to trade the U.S. markets; and TD Ameritrade Corporate Services, which provide self-directed brokerage services to employees of corporations. In addition, it offers various retail brokerage products and services, such as common and preferred stocks; ETFs; options; futures; foreign exchange; mutual funds; fixed income products; primary and secondary offerings of fixed income securities, closed-end funds, and preferred stocks; margin lending; cash management services; and annuities. The company provides its services primarily through the Internet, a network of retail branches, mobile trading applications, interactive voice response, and registered representatives through telephone. TD Ameritrade Holding Corporation was founded in 1971 and is headquartered in Omaha, Nebraska.

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