GCM Grosvenor (GCMG) vs. Its Competitors Head-To-Head Contrast

GCM Grosvenor (NASDAQ:GCMG) is one of 1,744 publicly-traded companies in the “Capital Markets” industry, but how does it contrast to its peers? We will compare GCM Grosvenor to related companies based on the strength of its valuation, profitability, analyst recommendations, earnings, dividends, risk and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for GCM Grosvenor and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCM Grosvenor	0	1	4	0	2.80
GCM Grosvenor Competitors	5560	20137	22477	642	2.37

GCM Grosvenor presently has a consensus price target of $14.62, suggesting a potential upside of 15.52%. As a group, “Capital Markets” companies have a potential upside of 26.42%. Given GCM Grosvenor’s peers higher probable upside, analysts plainly believe GCM Grosvenor has less favorable growth aspects than its peers.

Dividends

GCM Grosvenor pays an annual dividend of $0.48 per share and has a dividend yield of 3.8%. GCM Grosvenor pays out 92.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.1% of their earnings in the form of a dividend.

Insider & Institutional Ownership

100.0% of GCM Grosvenor shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 70.7% of GCM Grosvenor shares are held by company insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares GCM Grosvenor and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GCM Grosvenor	$557.57 million	$45.37 million	24.35
GCM Grosvenor Competitors	$2.39 billion	$398.52 million	17.86

GCM Grosvenor’s peers have higher revenue and earnings than GCM Grosvenor. GCM Grosvenor is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares GCM Grosvenor and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GCM Grosvenor	7.79%	142.74%	18.73%
GCM Grosvenor Competitors	318.50%	79.22%	3.72%

Risk & Volatility

GCM Grosvenor has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, GCM Grosvenor’s peers have a beta of 0.79, meaning that their average stock price is 21% less volatile than the S&P 500.

Summary

GCM Grosvenor beats its peers on 9 of the 15 factors compared.

GCM Grosvenor Company Profile

GCM Grosvenor Inc. is global alternative asset management solutions provider. The firm primarily provides its services to pooled investment vehicles. It also provides its services to investment companies, high net worth individuals, pension and profit sharing plans and state or municipal government entities. The firm invests in equity and alternative investment markets of the United States and internationally. The firm invests in multi-strategy, credit-focused, equity-focused, macro-focused, commodity-focused, and other specialty portfolios. It focuses in hedge fund asset classes, private equity, real estate, and/or infrastructure, credit and absolute return strategies. It also focuses in primary fund investments, secondary fund investments, and co-investments with a focus on buyout, distressed debt, mezzanine, venture capital/growth equity investments. The firm seeks to do seed investments in small, emerging, and diverse private equity firms. The firm seeks to make regionally-focused investments in middle-market buyout. It prefers to invest in aerospace and defense, advanced electronics, information technology, biosciences, and advanced materials. It focuses on Ohio and the Midwest region. The firm employs fundamental and quantitative analysis. GCM Grosvenor Inc. was founded in 1971 and is based in Chicago, Illinois with additional offices in North America, Asia, Australia and Europe.