Comparing Gain Capital (NYSE:GCAP) and Invesco DB Commodity Index Tracking Fund (NYSE:DBC)

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Gain Capital (NYSE:GCAP) and Invesco DB Commodity Index Tracking Fund (NYSE:DBC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Dividends

Gain Capital pays an annual dividend of $0.24 per share and has a dividend yield of 4.0%. Invesco DB Commodity Index Tracking Fund pays an annual dividend of $0.25 per share and has a dividend yield of 1.9%. Gain Capital pays out -25.3% of its earnings in the form of a dividend. Gain Capital has raised its dividend for 1 consecutive years. Gain Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Gain Capital and Invesco DB Commodity Index Tracking Fund’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gain Capital $233.90 million 0.98 -$60.76 million ($0.95) -6.36
Invesco DB Commodity Index Tracking Fund N/A N/A N/A N/A N/A

Invesco DB Commodity Index Tracking Fund has lower revenue, but higher earnings than Gain Capital.

Profitability

This table compares Gain Capital and Invesco DB Commodity Index Tracking Fund’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gain Capital 14.34% 31.81% 6.45%
Invesco DB Commodity Index Tracking Fund N/A N/A N/A

Risk & Volatility

Gain Capital has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, Invesco DB Commodity Index Tracking Fund has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Insider & Institutional Ownership

44.6% of Gain Capital shares are held by institutional investors. Comparatively, 29.9% of Invesco DB Commodity Index Tracking Fund shares are held by institutional investors. 9.0% of Gain Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Gain Capital and Invesco DB Commodity Index Tracking Fund, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gain Capital 0 2 0 0 2.00
Invesco DB Commodity Index Tracking Fund 0 0 0 0 N/A

Gain Capital presently has a consensus target price of $6.00, indicating a potential downside of 0.66%. Given Gain Capital’s higher probable upside, analysts clearly believe Gain Capital is more favorable than Invesco DB Commodity Index Tracking Fund.

Summary

Gain Capital beats Invesco DB Commodity Index Tracking Fund on 10 of the 11 factors compared between the two stocks.

Gain Capital Company Profile

GAIN Capital Holdings, Inc., together with its subsidiary, provides trading services and solutions to retail, institutional, and futures service customers worldwide. The company operates in two segments, Retail and Futures. It specializes in over-the-counter (OTC) and exchange-traded markets. The company offers access to a range of financial products, including spot foreign exchange (forex) and precious metals trading; and spread bets and contracts for differences on currencies, commodities, indices, individual equities, bonds, options, and interest rate products, as well as OTC options on forex. It provides services to retail customers through FOREX.com and Cityindex.com, as well as through brokers and white label partners. The company offers execution and risk management services for exchange-traded futures and futures options on the United States and European futures and options exchanges; and online trading services. GAIN Capital Holdings, Inc. was founded in 1999 and is headquartered in Bedminster, New Jersey.

Invesco DB Commodity Index Tracking Fund Company Profile

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. Deutsche Bank offers unparalleled financial services in countries throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people

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