Jefferies vs XP

This page compares Jefferies Financial Group Inc. and XP Inc., examining their business models, financial performance, and the market context in which they operate. It presents information in a neutral, accessible way to help readers understand similarities and differences between the two firms. Educational content, not financial advice.

This page compares Jefferies Financial Group Inc. and XP Inc., examining their business models, financial performance, and the market context in which they operate. It presents information in a neutra...

Comparison Snapshot

Key Financial Metrics

JEF

Metric

XP

$12.99B

Market Cap

$10.36B

26.95%

Potential Profit

15.51%

Buy

Analyst Rating

Buy

Investment Analysis

Jefferies

JEF

Pros

Jefferies has a diversified business model with segments in investment banking, capital markets, and asset management across multiple regions.
The company maintains a solid dividend yield of about 2.87%, offering income potential alongside growth.
Jefferies shows a reasonable valuation with a forward P/E ratio around 14, indicating some valuation appeal relative to earnings.

Considerations

Recent losses related to the First Brands collapse indicate exposure to credit and investment risks in its portfolio.
Return on equity (ROE) is moderate at 9.26%, which is lower than many peers in the capital markets sector.
The stock price has shown considerable volatility, with a 52-week range from $39.28 to $82.68, suggesting potential market sensitivity.

XP

Pros

XP Inc. benefits from Brazil's rising middle class, driving growth in digital financial services and brokerage products.
High gross profit margin near 69% and net profit margin around 29% indicate operational efficiency and profitability.
Strong future growth prospects supported by a stable earnings outlook and digital finance expansion in emerging markets.

Considerations

XP faces fee compression and increased competition from fintech rivals, which may pressure revenue growth and margins.
The company exhibits very high debt-to-equity ratio around 773%, signifying significant leverage and potential balance sheet risk.
Valuation metrics suggest some risk of overvaluation with mixed past performance and moderate financial health ratings.

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About The Companies

Jefferies (JEF)

Jefferies Financial Group Inc. (JEF) is a diversified financial services firm built around investment banking, capital markets, institutional sales and trading, asset management and wealth management. With a market capitalisation around $11.36 billion, Jefferies operates as a client-focused, mid-sized bank that tends to be more cyclical than large universal banks because a meaningful share of revenue comes from trading, underwriting and advisory fees tied to market activity. Investors should note the company’s exposure to market volatility, credit conditions and regulatory developments, which can drive earnings swings from year to year. Balance-sheet strength, risk controls and management’s track record are useful factors to watch, along with deal flow and trading volumes. This summary is educational only and not personal financial advice; equities can fall as well as rise and prospective investors should consider their own risk tolerance and seek professional guidance if unsure.

XP (XP)

XP Inc (XP) is a Brazil‑focused financial services platform that began as an online broker and has expanded into wealth management, retail banking and lending. With a market capitalisation around $8.99bn, XP generates revenue from commissions, advisory fees, asset management and interest income, and benefits from growth in Brazilian retail investing and digital adoption. Investors should note exposure to Brazil’s economic cycle, local currency (BRL) volatility, and regulatory changes that can affect margins and client flows. Competition from local banks, fintechs and neo‑banks can pressure fees and customer acquisition costs, while continued product diversification may broaden revenue streams but also raise execution risk. For those assessing XP, focus on metrics such as assets under custody and management, client acquisition and retention, and loan book quality. This is general educational information — not personalised investment advice — and potential returns can rise or fall depending on market and company performance.

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Comparison Snapshot