Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronic brokerage operator Interactive Brokers (Nasdaq: IBKR ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Interactive Brokers' business, and see what CAPS investors are saying about the stock right now.
Interactive Brokers facts
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Headquarters (founded)
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Greenwich, Connecticut (1977)
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Market Cap
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$644.93 million
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Industry
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Investment brokerage
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TTM Revenue
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$1.85 billion
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Management
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Founder/CEO Thomas Peterffy
CFO Paul Brody
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Return on Equity (average, last three years)
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22.8%
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Competitors
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Goldman Sachs (NYSE: GS )
Merrill Lynch (NYSE: MER )
Morgan Stanley (NYSE: MS )
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CAPS members bullish on IBKR also bullish on:
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General Electric (NYSE: GE )
Apple (Nasdaq: AAPL )
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CAPS members bearish on IBKR also bearish on:
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Citigroup (NYSE: C )
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Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 254 of the 270 members who have rated Interactive Brokers -- or 94% -- believe the stock will outperform the S&P 500 going forward. These bulls include philippalmer, who is ranked in the top 20% of our community, and my fellow Fool Jeff Fischer (TMFFischer).
In January, philippalmer tapped the stock as a smart way to break into trading:
Love this market maker. Great product, superfast executions and best prices. Conservatively managed, should provide good counter to risk. Does extremely well in times of high volatility.
In a pitch from October, Jeff elaborates on that bullish line of thinking:
Interactive Brokers is a 30-year old market-making firm, and brokerage house, that has trading platforms on some 70 exchanges around the world. It's one of the world's leading options market makers. The company is conservatively capitalized and has created programs to manage its risk that have been in operation for decades. When market volatility is high, [Interactive Brokers'] net income increases. The negative to the business: results will fluctuate with market trading volume and volatility. Higher volume and higher volatility are beneficial to [Interactive Brokers]. Lower, not so much.
What do you think about Interactive Brokers, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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