Macquarie vs Nomura Which Is More Profitable?

Macquarie Group and Nomura are two prominent financial services companies with divergent business models and geographical focuses. Macquarie is an Australian-based global investment banking company known for its expertise in infrastructure, asset management, and capital markets, while Nomura is a Japanese financial services firm specializing in investment banking, wealth management, and retail brokerage. Both companies have a strong presence in the global financial markets, but their strategies and areas of expertise differ, making them both attractive options for investors seeking exposure to international markets.

Macquarie or Nomura?

When comparing Macquarie and Nomura, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Macquarie and Nomura.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Macquarie has a dividend yield of 2.75%, while Nomura has a dividend yield of 1.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Macquarie reports a 5-year dividend growth of 24.83% year and a payout ratio of 76.63%. On the other hand, Nomura reports a 5-year dividend growth of 0.00% year and a payout ratio of 8.78%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Macquarie P/E ratio at 25.74 and Nomura's P/E ratio at 9.75. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Macquarie P/B ratio is 2.67 while Nomura's P/B ratio is 0.81.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Macquarie has seen a 5-year revenue growth of 0.50%, while Nomura's is 0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Macquarie's ROE at 10.51% and Nomura's ROE at 8.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $150.09 for Macquarie and $5.87 for Nomura. Over the past year, Macquarie's prices ranged from $101.94 to $165.98, with a yearly change of 62.82%. Nomura's prices fluctuated between $4.01 and $6.62, with a yearly change of 65.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.