In an economy with an average Return on Equity (ROE) of about 12%, investors typically use this percent return, give or take, to discount a company’s cash flows. However, financial markets in the United States are one of the most efficient industries globally, and a 50%+ ROE speaks volume. It’s also worth mentioning that excluding the companies on today’s list, the rest of the financial industry in the U.S. is averaging an ROE of just 10.6%.
OM Asset Management PLC (NYSE: OMAM) – $14.96
Investment Management & Fund Operators
OM Asset Management plc is a multi-boutique asset management company that operates its business through its seven affiliate firms (Affiliates).
- Market Cap: $1,858,677,903
- ROE: 236.1%
- Net Income (LTM): $114,500,000
- Average Total Equity (12 months): $48,500,000
Virtu Financial Inc. (NASDAQ: VIRT) – $23.01
Financial & Commodity Market Operators
Virtu Financial, Inc. is a financial holding company. The Company is a technology-enabled market maker and liquidity provider to the financial markets, engaged in buying and selling securities and other financial instruments. It provides liquidity and competitive pricing in foreign currency markets directly to market participants on its own trading platform called VFX and through other customized liquidity arrangements. The Company’s platform generates and disseminates continuous bid and offer quotes on over 11,000 tradable listed products.
- Market Cap: $3,173,213,468
- ROE: 135.7%
- Net Income (LTM): $157,649,000
- Average Total Equity (12 months): $116,161,000
Lazard Ltd. (NYSE: LAZ) – $43.30
Investment Banking & Brokerage Services
Lazard Ltd. (Lazard) is a financial advisory and asset management company. The Company operates in two business segments: Financial Advisory and Asset Management.
- Market Cap: $5,618,871,740
- ROE: 100.0%
- Net Income (LTM): $691,309,000
- Average Total Equity (12 months): $691,387,000
CBOE Holdings Inc. (NASDAQ: CBOE) – $67.08
Financial & Commodity Market Operators
CBOE Holdings, Inc., is a holding company. Its principal business is operating markets that offer for trading options on various market indexes (index options), on an exclusive basis and futures contracts, as well as on non-exclusive multiply listed options, such as options on the stocks of individual corporations (equity options) and options on other exchange-traded products (ETP options), such as exchange-traded funds (ETF options) and exchange-traded notes (ETN options).
- Market Cap: $5,553,271,129
- ROE: 77.9%
- Net Income (LTM): $183,990,000
- Average Total Equity (12 months): $236,070,500
Artisan Partners Asset Management Inc. (NASDAQ: APAM) – $35.53
Investment Management & Fund Operators
Artisan Partners Asset Management Inc. is an investment management firm that provides a range of United States, non-United States and global investment strategies. The Firm’s operations are conducted through Artisan Partners Holdings and its subsidiaries. It derives its revenues from investment management fees.
- Market Cap: $2,586,704,550
- ROE: 62.4%
- Net Income (LTM): $66,178,000
- Average Total Equity (12 months): $106,128,000
NorthStar Asset Management Group Inc. (NYSE: NSAM) – $14.24
Investment Management & Fund Operators
Northstar Asset Management Group Inc. is an asset management company that is focused on managing real estate and other investment platforms in the United States and internationally. The Company owns NorthStar Realty Securities, LLC (NorthStar Securities), which is a captive broker-dealer platform and raises capital in the retail market for its sponsored companies.
- Market Cap: $2,781,691,066
- ROE: 52.0%
- Net Income (LTM): $106,971,000
- Average Total Equity (12 months): $205,754,500
Source: Thomson Reuters
Net Debt = Total Debt – Cash and Short Term Investments
LTM – Last Twelve Months
LFQ – Last Fiscal Quarter
Y/Y – Year over Year
YTD – Year to Date
DPS – Dividend per Share
