Head-To-Head Survey: Cohen & Steers (CNS) vs. The Carlyle Group L.P. (CG)

Cohen & Steers (NYSE: CNS) and The Carlyle Group L.P. (NASDAQ:CG) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Valuation & Earnings

This table compares Cohen & Steers and The Carlyle Group L.P.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cohen & Steers $366.32 million 5.14 $150.50 million $2.06 19.74
The Carlyle Group L.P. $3.21 billion 0.68 $894.40 million $1.31 18.32

The Carlyle Group L.P. has higher revenue and earnings than Cohen & Steers. The Carlyle Group L.P. is trading at a lower price-to-earnings ratio than Cohen & Steers, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Cohen & Steers has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, The Carlyle Group L.P. has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Cohen & Steers and The Carlyle Group L.P., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cohen & Steers 1 1 1 0 2.00
The Carlyle Group L.P. 0 5 4 0 2.44

Cohen & Steers presently has a consensus target price of $45.50, suggesting a potential upside of 11.88%. The Carlyle Group L.P. has a consensus target price of $23.50, suggesting a potential downside of 2.08%. Given Cohen & Steers’ higher possible upside, analysts plainly believe Cohen & Steers is more favorable than The Carlyle Group L.P..

Profitability

This table compares Cohen & Steers and The Carlyle Group L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cohen & Steers 26.34% 33.17% 26.42%
The Carlyle Group L.P. 4.13% 41.32% 7.03%

Institutional and Insider Ownership

45.4% of Cohen & Steers shares are owned by institutional investors. Comparatively, 40.7% of The Carlyle Group L.P. shares are owned by institutional investors. 52.9% of Cohen & Steers shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Cohen & Steers pays an annual dividend of $1.12 per share and has a dividend yield of 2.8%. The Carlyle Group L.P. pays an annual dividend of $1.68 per share and has a dividend yield of 7.0%. Cohen & Steers pays out 54.4% of its earnings in the form of a dividend. The Carlyle Group L.P. pays out 128.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The Carlyle Group L.P. has raised its dividend for 5 consecutive years. The Carlyle Group L.P. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Cohen & Steers beats The Carlyle Group L.P. on 9 of the 17 factors compared between the two stocks.

Cohen & Steers Company Profile

Cohen & Steers, Inc. (CNS) is a holding company. The Company is an investment manager with a focus on liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. The Company serves institutional and individual investors. The Company manages three types of investment vehicles: institutional accounts, open-end funds and closed-end funds. The Company also provides services in connection with model-based strategies (MBS) accounts. In addition, the Company provides several services in connection with assets held by unit investment trusts (UITs). As a portfolio consultant to a number of UITs, the Company constructs a portfolio of securities that suit the investment objective of the UIT. The Company also provides ongoing portfolio monitoring services and provides a license to certain firms to use its name in connection with certain of their investment products.

The Carlyle Group L.P. Company Profile

The Carlyle Group L.P. is a diversified multi-product global alternative asset management firm. The Company operates in four segments: Corporate Private Equity (CPE), Real Assets, Global Market Strategies (GMS) and Investment Solutions. Corporate Private Equity advises its buyout and growth capital funds, which pursue various corporate investments of different sizes and growth potentials. As of December 31, 2016, the Real Assets segment advised its 26 active carry funds focused on real estate, infrastructure and energy and natural resources (including power). As of December 31, 2016, the Global Market Strategies segment advised a group of 57 active funds that pursue investment strategies, including leveraged loans and structured credit, energy mezzanine opportunities, middle market lending and distressed debt. Its Investment Solutions segment provides investment opportunities and resources for its investors and clients.

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