In its monthly market activity report for Feb 2013,
The Charles Schwab Corporation
) reported Daily Average Revenue Trades (DARTs) of 506,100. The
DARTs were up 0.3% from 504,700 in the prior month and 1% from
500,100 in the year-ago month.
TD AMERITRADE (AMTD): Free Stock Analysis
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SCHWAB(CHAS) (SCHW): Free Stock Analysis
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Schwab's net new assets - bought by the new and existing clients
- totaled $18.3 billion, surging 51% from Jan 2013, but plunging
14% from Feb 2012. Also, this included an $8.1 billion inflow
related to a mutual fund clearing services client. Further, total
client assets stood at $2.04 trillion, improving 1% from Jan 2013
and 13% from Feb 2012.
Schwab opened 75,000 new brokerage accounts in the reported
month, 14% less than Jan 2013 level and 1% lower than Feb 2012
level. The company's active brokerage accounts totaled 8.84
million, almost flat compared with the prior-month and up 3% year
Moreover, clients' banking accounts inched up 1% over the
prior-month and elevated 11% year over year to 881,000. Also, the
number of corporate retirement plan participants was 1,557
million, almost at par with Jan 2013 and improving 3% from Feb
Unlike Schwab, two investment brokers -
TD Ameritrade Holding Corporation
E*TRADE Financial Corporation
) - reported a decline in the DARTs for the month of Feb 2013. TD
Ameritrade's DARTs were marginally lower from Jan 2013 and 6%
from Feb 2012. Similarly, E*TRADE's DARTs fell 1% from the prior
month and 10% from the prior-year month.
Amid the challenging economy, rising DARTs and new brokerage
accounts will be beneficial for Schwab. Yet, lower trading
activities and fluctuating interest rates are expected to
continuously impact the company's financials in the near term.
Further, we remain concerned about Schwab's capital intensity
relative to its peers. However, its focus on low-cost capital
structure will help it sustain better results in the upcoming
Schwab currently retains a Zacks Rank #3 (Hold). However, another
Evercore Partners Inc.
) is more favorably placed and carries a Zacks Rank #1 (Strong