Reviewing Noah (NYSE:NOAH) & Dundee (OTCMKTS:DDEJF)
by Kim Johansen · The Markets DailyNoah (NYSE:NOAH – Get Free Report) and Dundee (OTCMKTS:DDEJF – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.
Profitability
This table compares Noah and Dundee’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Noah | 33.36% | 10.05% | 8.14% |
| Dundee | N/A | -15.24% | -11.30% |
Insider and Institutional Ownership
42.7% of Noah shares are owned by institutional investors. Comparatively, 3.0% of Dundee shares are owned by institutional investors. 47.2% of Noah shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Noah has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Dundee has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.
Valuation and Earnings
This table compares Noah and Dundee’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Noah | $291.18 million | 2.90 | $142.18 million | $2.04 | 6.30 |
| Dundee | $6.66 million | 11.31 | -$28.75 million | ($0.32) | -2.66 |
Noah has higher revenue and earnings than Dundee. Dundee is trading at a lower price-to-earnings ratio than Noah, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings for Noah and Dundee, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Noah | 0 | 0 | 2 | 0 | 3.00 |
| Dundee | 0 | 0 | 0 | 0 | N/A |
Noah presently has a consensus price target of $18.00, indicating a potential upside of 39.97%. Given Noah’s higher possible upside, analysts clearly believe Noah is more favorable than Dundee.
Summary
Noah beats Dundee on 12 of the 13 factors compared between the two stocks.
About Noah
Noah Holdings Limited, together with its subsidiaries, operates as a wealth and asset management service provider with the focus on investment and asset allocation services for high net worth individuals and enterprises in Mainland of China, Hong Kong, and internationally. It operates through three segments: Wealth Management, Asset Management, and Other Businesses. The company offers investment products, including domestic and overseas publicly raised and public securities investment funds, privately-raised investment funds, and private equity products; customized value-added financial services, such as investor education and trust services, as well as insurance brokerage services; and insurance products. It also provides onshore and offshore private equity, real estate, public securities, multi-strategy, and other investment products, as well as lending services. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.
About Dundee
Dundee Corporation is a publicly owned investment manager. Through its operating subsidiaries, the firm is engaged in diverse business activities in the areas of investment advisory, corporate finance, energy, resources, agriculture, real estate and infrastructure. The Corporation also holds, directly and indirectly, a portfolio of investments mostly in these key areas, as well as other select investments in both publicly listed and private enterprises. Dundee Corporation was formerly known as Dundee Bancorp, Inc. Dundee Corporation was founded in 1984 is based in Toronto, Canada with additional office in Vancouver, Canada.