Comparing U.S. Global Investors (NASDAQ:GROW) & TPG (NASDAQ:TPG)

TPG (NASDAQ:TPG) and U.S. Global Investors (NASDAQ:GROW) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Profitability

This table compares TPG and U.S. Global Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG	0.67%	24.66%	8.15%
U.S. Global Investors	5.40%	1.05%	0.99%

Dividends

TPG pays an annual dividend of $1.64 per share and has a dividend yield of 3.2%. U.S. Global Investors pays an annual dividend of $0.09 per share and has a dividend yield of 4.1%. TPG pays out -497.0% of its earnings in the form of a dividend. U.S. Global Investors pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current ratings and recommmendations for TPG and U.S. Global Investors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG	0	7	6	0	2.46
U.S. Global Investors	0	0	0	0	0.00

TPG currently has a consensus target price of $60.08, suggesting a potential upside of 15.75%. Given TPG’s stronger consensus rating and higher possible upside, equities research analysts clearly believe TPG is more favorable than U.S. Global Investors.

Earnings and Valuation

This table compares TPG and U.S. Global Investors”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG	$2.64 billion	7.26	$23.48 million	($0.33)	-157.30
U.S. Global Investors	$8.93 million	3.30	$1.33 million	$0.03	73.67

TPG has higher revenue and earnings than U.S. Global Investors. TPG is trading at a lower price-to-earnings ratio than U.S. Global Investors, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

94.0% of TPG shares are held by institutional investors. Comparatively, 23.6% of U.S. Global Investors shares are held by institutional investors. 70.0% of TPG shares are held by insiders. Comparatively, 19.2% of U.S. Global Investors shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

TPG has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, U.S. Global Investors has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.

Summary

TPG beats U.S. Global Investors on 12 of the 16 factors compared between the two stocks.

About TPG

TPG Inc. operates as an alternative asset manager in the United States and internationally. The company offers investment management services to TPG Funds, limited partners, and other vehicles. It also offers monitoring services to portfolio companies; advisory, debt and equity arrangement, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. In addition, the company invests in private equity funds, real estate funds, hedge funds, and credit funds. TPG Inc. was founded in 1992 and is based in Fort Worth, Texas. The company operates as a subsidiary of TPG GP A, LLC.

About U.S. Global Investors

U.S. Global Investors, Inc. is a publicly owned investment manager. It primarily provides its services to investment companies. The firm is a large advisory firm, an investment adviser to an investment company which provides portfolio management for investment companies. The firm manages and launches equity/balanced funds, fixed income funds and other funds. It also manages hedge funds. The firm primarily invests in no-load mutual funds and exchange traded funds (ETFs). U.S. Global Investors, Inc. is based in San Antonio, Texas.