Jefferies Financial Group Inc. (JEF) vs Tradeweb Markets Inc. (TW)

Jefferies Financial Group Inc. and Tradeweb Markets Inc. are both Capital Markets companies. Tradeweb Markets Inc. is the larger, with a market value of $29.6B against $11.2B — 2.7× the size. Jefferies Financial Group Inc. trades at the lower P/E: 12.7× against 29.0×. Jefferies Financial Group Inc. grew revenue faster over the last twelve months: 17.7% against 14.4%. Tradeweb Markets Inc. has the higher net margin (39.8% vs 10.1%) and the higher return on invested capital (12.1% vs 8.20%). Both pay a dividend; Jefferies Financial Group Inc. yields more (3.27% vs 0.42%). Across the 21 metrics below, Tradeweb Markets Inc. leads on 12 and Jefferies Financial Group Inc. on 9.

Valuation

Metric JEF TW Capital Markets median
P/E 12.70 29.01 14.35
P/S 1.14 11.77 2.07
P/B 0.90 3.66 1.36
Price to free cash flow 2.33 24.80 9.28
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.87% 3.45% (8.28%)
Free cash flow yield 42.96% 4.03% (1.12%)

Profitability

Metric JEF TW Capital Markets median
Gross margin 98.17% 100.00% 68.15%
Operating margin 23.38% 44.12% 0.00%
Net margin 10.06% 39.83% (0.34%)
Free cash flow margin 48.96% 47.44% 0.00%
Return on equity 8.06% 12.74% 0.00%
Return on assets 1.14% 11.07% 0.00%
Return on invested capital 8.20% 12.06% 0.00%

Growth

Metric JEF TW Capital Markets median
Revenue growth (TTM) 17.74% 14.43% 19.72%
EPS growth (last fiscal year) (5.35%) 62.23% 16.79%
Revenue growth, 5-year CAGR 4.65% 18.12% 17.41%
Net income growth, 5-year CAGR (3.90%) 37.35% 0.00%

Health

Metric JEF TW Capital Markets median
Debt to equity 2.09 0.00 0.07
Current ratio 1.02 4.55 1.51
Net debt to EBITDA 1.89 (1.92) (0.03)

Dividend

Metric JEF TW Capital Markets median
Dividend yield 3.27% 0.42% 1.58%
Payout ratio 0.43 0.12 0.19

Size

Metric JEF TW Capital Markets median
Market cap 11.16b 29.61b 527.01m

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