Why Interactive Brokers Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronic brokerage operator Interactive Brokers Group (NASDAQ: IBKR  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Interactive Brokers and see what CAPS investors are saying about the stock right now.

Interactive Brokers facts

 

 

Headquarters (founded)

Greenwich, Conn. (1977)

Market Cap

$693.3 million

Industry

Specialized finance

Trailing-12-Month Revenue

$1.1 billion

Management

Founder/Chairman Thomas Peterffy

CFO Paul Brody

Return on Equity (average, past 3 years)

10.5%

Cash/Debt

$21.9 billion/$2.0 billion

Dividend Yield

2.8%

Competitors

Charles Schwab (NYSE: SCHW  )

E*TRADE Financial (NASDAQ: ETFC  )

TD Ameritrade (NYSE: AMTD  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 643 members who have rated Interactive Brokers believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, yieldideas, succinctly summed up the bull case for our community:

Interactive Brokers is an excellent run company, with high profit margins, operating in a sector that has had some challenges in the last couple of years. IB is known for its highly automated systems which helps keep pre-tax profit margins consistently higher than its competitors. As the Baby Boomer Generation which tends to be more "do-it-yourself" is retiring, some assets will shift out of 401Ks and into independent brokers such as TD Ameritrade, Schwab, Fidelity, and to some extent to Interactive Brokers.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Interactive Brokers may not be your top choice.

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