JefferiesFirst Horizon

Jefferies vs First Horizon

Jefferies and First Horizon compare their business models, financial performance, and market context to help readers understand how each company operates and fits within the sector. The page presents ...

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Investment Analysis

Pros

  • Jefferies Financial Group demonstrates solid operational effectiveness with a return on equity of 7.98% and return on assets of 1.35%, reflecting efficient management and resilience.
  • The company maintains a strong balance sheet with gross assets around $69.3 billion and prudent debt-to-equity management supporting long-term investments.
  • Jefferies benefits from positive analyst sentiment with a consensus Buy rating and a substantial 12-month price target increase potential of about 25-28%.

Considerations

  • Despite recent earnings growth, Jefferies’ EPS has declined 18% over three years, indicating inconsistent profitability performance.
  • Shares have shown volatility, having experienced a significant recent drop of about 27%, reflecting some investor uncertainty or market sensitivity.
  • Exposure to the bankruptcy of First Brands poses a potential, though manageable, financial risk, as Jefferies invested approximately $43 million in the collapsed supplier.

Pros

  • First Horizon operates as a diversified financial holding company with substantial portfolio holdings valued over $2 billion, enhancing asset diversification.
  • The company holds significant investments in leading ETFs and blue-chip tech companies, including Apple and Microsoft, supporting stable portfolio growth.
  • First Horizon’s business spans multiple retail and banking products including mortgage banking, providing diverse revenue streams in financial services.

Considerations

  • First Horizon’s portfolio size and holdings represent considerable complexity and potential execution risks in managing such a wide asset range.
  • The company’s market and financial specifics show less analyst coverage and recent momentum compared to peers, posing visibility challenges for investors.
  • Exposure to economic cycles affecting banking products like mortgage lending may introduce sensitivity to interest rate fluctuations and macroeconomic conditions.

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