Macquarie Group in my opinion warrants a higher PE than the big four banks as they have very different business structures, Macquarie has scope to have way higher earning capacity in its other segments as opposed to the tiny net interest margins of around 2% the big four is getting squeezed on at the moment in home loans which make up majority of their earnings - yes Macquarie has pushed further into the mortgage landscape in the last year or so, but the vast amount of the earnings come from the other segments.
1Q25 Overview of earnings per segment: 19% Banking & Financial Services - Home loans, business banking, deposits, funds 18% Asset Management 47% Commodities & Global Markets 15% Macquarie Capital - Deals, advisory
The big four have had a decent run recently, but Macquarie has outperformed vs. peers on a 1, 5 and 10 year basis as of today.
MQG Price at posting:
$231.65 Sentiment: Hold Disclosure: Held
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