Comparing Citigroup (NYSE:C) and UBS Group (NYSE:UBS)

Citigroup (NYSE:C) and UBS Group (NYSE:UBS) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Profitability

This table compares Citigroup and UBS Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citigroup 13.64% 7.40% 0.62%
UBS Group 15.29% 8.12% 0.45%

Risk & Volatility

Citigroup has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, UBS Group has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Earnings & Valuation

This table compares Citigroup and UBS Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citigroup $103.45 billion 1.01 $19.40 billion $7.58 6.60
UBS Group $28.31 billion 1.51 $4.30 billion $1.14 10.25

Citigroup has higher revenue and earnings than UBS Group. Citigroup is trading at a lower price-to-earnings ratio than UBS Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Citigroup and UBS Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citigroup 0 4 18 0 2.82
UBS Group 0 7 7 0 2.50

Citigroup presently has a consensus price target of $73.45, indicating a potential upside of 46.87%. UBS Group has a consensus price target of $15.00, indicating a potential upside of 28.42%. Given Citigroup’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Citigroup is more favorable than UBS Group.

Institutional & Insider Ownership

77.3% of Citigroup shares are held by institutional investors. Comparatively, 29.8% of UBS Group shares are held by institutional investors. 0.1% of Citigroup shares are held by insiders. Comparatively, 1.0% of UBS Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Citigroup beats UBS Group on 9 of the 14 factors compared between the two stocks.

About Citigroup

Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. The company operates through two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. The ICG segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate and consumer loans, investment banking and advisory services, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. As of December 31, 2018, it operated 2,410 branches in the United States, Mexico, and Asia. Citigroup Inc. was founded in 1812 and is headquartered in New York, New York.

About UBS Group

UBS Group AG, together with its subsidiaries, provides financial advice and solutions worldwide. It operates through four divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, and Investment Bank. The Global Wealth Management division offers investment advisory and solutions to private clients, and high and ultra high net worth clients. This segment provides corporate and banking, lending, wealth planning, investment, asset protection, and philanthropy services, as well as family office services. The Personal & Corporate Banking division provides financial products and services to private, corporate, and institutional clients. The Asset Management division offers investment products and services comprising equities, fixed income products, hedge funds, real estate and private markets, indexed and alternative beta strategies, and asset allocation and currency investment strategies; customized multi-asset, advisory, and fiduciary services; multi-manager hedge fund solutions and advisory services; and fund corporate governance and white-labeling services. The Investment Bank division provides advisory, debt and equity capital market, and financing solutions; and market lending services for global wealth management, personal and corporate banking, and asset management businesses serving the corporate, institutional, and wealth management clients. This division also offers cash, derivatives, and financing; foreign exchange, precious metals, rates, and credit; and securities research services. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.

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