Institutional Financial Markets, Inc. (COHN) vs Heritage Global Inc. (HGBL)

Institutional Financial Markets, Inc. and Heritage Global Inc. are both Capital Markets companies. Heritage Global Inc. is the larger, with a market value of $43.3M against $34.7M — 1.2× the size. Heritage Global Inc. has negative trailing earnings, so its P/E is not meaningful; Institutional Financial Markets, Inc. trades at 1.1×. Institutional Financial Markets, Inc. grew revenue faster over the last twelve months: 126.4% against −1.50%. Institutional Financial Markets, Inc. has the higher net margin (5.65% vs −29.6%) and the higher return on invested capital (7.99% vs −26.0%). Across the 18 metrics below, Institutional Financial Markets, Inc. leads on 13 and Heritage Global Inc. on 5.

Valuation

Metric COHN HGBL Capital Markets median
P/E 1.05 n/m 14.20
P/S 0.07 0.93 2.00
P/B 0.21 0.87 1.51
Price to free cash flow n/m n/m 6.36
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 95.19% (31.54%) (3.94%)
Free cash flow yield (35.30%) (2.43%) (1.62%)

Profitability

Metric COHN HGBL Capital Markets median
Gross margin 100.00% 64.83% 62.80%
Operating margin 22.06% (36.98%) 0.00%
Net margin 5.65% (29.63%) (0.55%)
Free cash flow margin (2.58%) (2.27%) 0.00%
Return on equity 17.61% (24.29%) 0.00%
Return on assets 1.84% (18.08%) 0.00%
Return on invested capital 7.99% (26.01%) 0.00%

Growth

Metric COHN HGBL Capital Markets median
Revenue growth (TTM) 126.39% (1.50%) 20.70%
EPS growth (last fiscal year) 5,537.50% (28.57%) 22.92%
Revenue growth, 5-year CAGR 16.19% 14.25% 18.16%
Net income growth, 5-year CAGR 0.32% (17.97%) 0.00%

Health

Metric COHN HGBL Capital Markets median
Debt to equity 4.33 0.08 0.08
Current ratio 0.86 1.69 1.50
Net debt to EBITDA 6.20 (2.39) (0.24)

Dividend

Metric COHN HGBL Capital Markets median
Dividend yield 9.82% — 1.36%
Payout ratio 0.18 — 0.19

Size

Metric COHN HGBL Capital Markets median
Market cap 34.74m 43.30m 565.91m

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