Lazard (LAZ) versus Its Competitors Head to Head Contrast

Lazard (NYSE: LAZ) is one of 17 publicly-traded companies in the “Investment Banking” industry, but how does it compare to its competitors? We will compare Lazard to similar businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for Lazard and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lazard 0 3 4 0 2.57
Lazard Competitors 61 336 319 25 2.42

Lazard presently has a consensus target price of $48.00, suggesting a potential upside of 4.53%. As a group, “Investment Banking” companies have a potential downside of 14.32%. Given Lazard’s stronger consensus rating and higher probable upside, analysts plainly believe Lazard is more favorable than its competitors.

Volatility & Risk

Lazard has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Lazard’s competitors have a beta of 1.20, indicating that their average share price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

72.3% of Lazard shares are owned by institutional investors. Comparatively, 59.6% of shares of all “Investment Banking” companies are owned by institutional investors. 2.5% of Lazard shares are owned by company insiders. Comparatively, 18.9% of shares of all “Investment Banking” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Lazard pays an annual dividend of $1.64 per share and has a dividend yield of 3.6%. Lazard pays out 46.9% of its earnings in the form of a dividend. As a group, “Investment Banking” companies pay a dividend yield of 2.7% and pay out -254.0% of their earnings in the form of a dividend. Lazard has increased its dividend for 6 consecutive years.

Profitability

This table compares Lazard and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lazard 17.16% 38.81% 10.84%
Lazard Competitors 3.39% 6.10% 4.68%

Valuation and Earnings

This table compares Lazard and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Lazard $2.38 billion $387.69 million 13.12
Lazard Competitors $902.64 million $129.13 million 308.65

Lazard has higher revenue and earnings than its competitors. Lazard is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Lazard beats its competitors on 11 of the 15 factors compared.

About Lazard

Lazard Ltd (Lazard) is a financial advisory and asset management company. The Company operates through two segments: Financial Advisory and Asset Management. It serves a range of clients around the world, including corporations, governments, institutions, partnerships and individuals. The Financial Advisory business segment offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a range of financial advisory services regarding mergers and acquisitions (M&A) and other strategic matters, restructurings, capital structure, capital raising and various other financial matters to corporate, partnership, institutional, government, sovereign and individual clients. The Asset Management business provides investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds and sovereign entities.

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