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...
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Capitalizing on the IPO Boom
A collection of carefully selected stocks that stand to benefit from the surging IPO market. Our professional analysts have identified the financial firms, exchanges, and investment banks that facilitate and profit from this increased capital raising activity.
Published: July 2, 2025
Explore BasketWhich Baskets Do They Appear In?
Capitalizing on the IPO Boom
A collection of carefully selected stocks that stand to benefit from the surging IPO market. Our professional analysts have identified the financial firms, exchanges, and investment banks that facilitate and profit from this increased capital raising activity.
Published: July 2, 2025
Explore BasketInvestment 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
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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