By
Brian D. Pacampara
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August 15, 2011
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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' business and see what CAPS investors are saying about the stock right now.
Interactive Brokers facts
| Headquarters (founded) |
Greenwich, Conn. (1977) |
| Market Cap |
$682.6 million |
| Industry |
Investment brokerage |
| Trailing-12-Month Revenue |
$1.15 billion |
| Management |
Founder/Chairman/CEO Thomas Peterffy
CFO Paul Brody |
| Return on Equity (average, past 3 years) |
12.3% |
| Dividend Yield |
2.7% |
| Competitors |
Charles Schwab (NYSE: SCHW )
E*TRADE Financial (Nasdaq: ETFC )
TD AMERITRADE (Nasdaq: AMTD ) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 582 members who have rated Interactive Brokers believe the stock will outperform the S&P 500 going forward. These bulls include ipsiety and astephan2525.
Earlier this month, ipsiety listed a few of Interactive Brokers' positives:
Lot of room for growth
Like their brokerage, use it myself.
Insiders are buying.
Currently, Interactive Brokers even trades at a cheapish price-to-sales ratio of 0.6. That represents a discount to competitors such as Charles Schwab (3.2), E*TRADE (2.3), and TD AMERITRADE (3.2).
CAPS member astephan2525 elaborates on the bull case:
For serious investors Interactive Brokers is the best. They have the lowest fees, the best execution, the most comprehensive and automatic systems, and the most global reach. However they have struggled a little throughout the financial crisis. They probably fall into the category of "too honest". Most companies succeed in the financial industry by cheating their customers, not by offering them low-priced services.
What do you think about Interactive Brokers, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Interactive Brokers? Add it to your watchlist.
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