PJT Partners (NYSE:PJT) and Virtus Investment Partners (NASDAQ:VRTS) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Virtus Investment Partners pays an annual dividend of $2.68 per share and has a dividend yield of 2.2%. Virtus Investment Partners pays out 21.9% of its earnings in the form of a dividend. Virtus Investment Partners has raised its dividend for 1 consecutive years. Virtus Investment Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current recommendations and price targets for PJT Partners and Virtus Investment Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Virtus Investment Partners||0||2||3||0||2.60|
PJT Partners currently has a consensus price target of $42.00, indicating a potential downside of 2.26%. Virtus Investment Partners has a consensus price target of $109.60, indicating a potential downside of 9.02%. Given PJT Partners’ higher probable upside, equities analysts clearly believe PJT Partners is more favorable than Virtus Investment Partners.
Valuation and Earnings
This table compares PJT Partners and Virtus Investment Partners’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PJT Partners||$580.25 million||1.71||$42.56 million||N/A||N/A|
|Virtus Investment Partners||$552.23 million||1.50||$75.53 million||$12.26||9.83|
Virtus Investment Partners has lower revenue, but higher earnings than PJT Partners.
This table compares PJT Partners and Virtus Investment Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Virtus Investment Partners||13.49%||21.89%||4.03%|
Risk and Volatility
PJT Partners has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Virtus Investment Partners has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.
Insider and Institutional Ownership
65.2% of PJT Partners shares are held by institutional investors. Comparatively, 88.9% of Virtus Investment Partners shares are held by institutional investors. 3.0% of PJT Partners shares are held by company insiders. Comparatively, 5.6% of Virtus Investment Partners shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Virtus Investment Partners beats PJT Partners on 10 of the 16 factors compared between the two stocks.
PJT Partners Company Profile
PJT Partners Inc., an investment bank, provides various strategic advisory, shareholder engagement, restructuring and special situations, and private fund advisory and placement services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers a range of financial advisory and transaction execution capability, including mergers and acquisitions, joint ventures, minority investments, asset swaps, divestitures, takeover defenses, corporate finance advisory, private placements, and distressed sales. The company also advices companies, creditors, and financial sponsors on recapitalizations, reorganizations, exchange offers, debt repurchases, capital raises, and distressed mergers and acquisitions. In addition, it offers private fund advisory and placement services for various investment strategies, including private equity, hedge fund, real estate, and secondary advisory groups. The company was formerly known as Blackstone Advisory Inc. and changed its name to PJT Partners Inc. in March 2015. PJT Partners Inc. is headquartered in New York, New York.
Virtus Investment Partners Company Profile
Virtus Investment Partners, Inc. is a publicly owned investment manager. The firm primarily provides its services to individual and institutional clients. It launches separate client focused equity and fixed income portfolios. The firm launches equity, fixed income, and balanced mutual funds for its clients. It invests in the public equity, fixed income, and real estate markets. The firm also invests in exchange traded funds. It employs a multi manager approach for its products. The firm employs quantitative analysis to make its investments. It benchmarks the performance of its portfolios against the S&P 500 Index. The firm conducts in-house research to make its investments. Virtus Investment Partners, Inc. was founded in 1988 and is based in Hartford, Connecticut.
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