Head-To-Head Contrast: The Blackstone Group L.P. (BX) and OM Asset Management PLC (OMAM)

The Blackstone Group L.P. (NYSE: BX) and OM Asset Management PLC (NYSE:OMAM) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Dividends

The Blackstone Group L.P. pays an annual dividend of $2.16 per share and has a dividend yield of 6.5%. OM Asset Management PLC pays an annual dividend of $0.36 per share and has a dividend yield of 2.4%. The Blackstone Group L.P. pays out 97.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. OM Asset Management PLC pays out 45.6% of its earnings in the form of a dividend. The Blackstone Group L.P. has increased its dividend for 4 consecutive years. The Blackstone Group L.P. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

The Blackstone Group L.P. has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, OM Asset Management PLC has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Profitability

This table compares The Blackstone Group L.P. and OM Asset Management PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Blackstone Group L.P. 22.88% 18.97% 8.76%
OM Asset Management PLC 12.12% 95.51% 12.52%

Valuation & Earnings

This table compares The Blackstone Group L.P. and OM Asset Management PLC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
The Blackstone Group L.P. $6.33 billion 3.41 $1.44 billion $2.22 14.98
OM Asset Management PLC $772.40 million 2.15 $173.80 million $0.79 19.16

The Blackstone Group L.P. has higher revenue and earnings than OM Asset Management PLC. The Blackstone Group L.P. is trading at a lower price-to-earnings ratio than OM Asset Management PLC, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

46.6% of The Blackstone Group L.P. shares are held by institutional investors. Comparatively, 66.0% of OM Asset Management PLC shares are held by institutional investors. 1.0% of The Blackstone Group L.P. shares are held by insiders. Comparatively, 1.5% of OM Asset Management PLC shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for The Blackstone Group L.P. and OM Asset Management PLC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Blackstone Group L.P. 0 1 8 0 2.89
OM Asset Management PLC 0 0 6 0 3.00

The Blackstone Group L.P. presently has a consensus price target of $37.78, indicating a potential upside of 13.58%. OM Asset Management PLC has a consensus price target of $17.88, indicating a potential upside of 18.06%. Given OM Asset Management PLC’s stronger consensus rating and higher possible upside, analysts clearly believe OM Asset Management PLC is more favorable than The Blackstone Group L.P..

Summary

The Blackstone Group L.P. beats OM Asset Management PLC on 9 of the 17 factors compared between the two stocks.

The Blackstone Group L.P. Company Profile

The Blackstone Group L.P. is a global alternative asset manager. The Company’s alternative asset management businesses include investment vehicles focused on private equity, non-investment grade credit, secondary private equity funds of funds and multi-asset class strategies. It operates through four segments: Private Equity, Real Estate, Hedge Fund Solutions and Credit. The Private Equity segment includes its corporate private equity business, which consists of its corporate private equity funds, Blackstone Capital Partners (BCP) funds, its sector-focused corporate private equity funds, including its energy-focused funds, Blackstone Energy Partners (BEP) funds and its core private equity fund. The Blackstone Real Estate Partners funds target a range of opportunistic real estate and real estate related investments. The Hedge Fund Solutions segment consists of Blackstone Alternative Asset Management (BAAM). The Credit segment consists principally of GSO Capital Partners LP (GSO).

OM Asset Management PLC Company Profile

OM Asset Management plc is a global, diversified, multi-boutique asset management company. As of December 31, 2016, the Company operated its business through its eight Affiliates, each of which operated autonomously and employed its own investment processes. Its Affiliates include Acadian Asset Management LLC; Barrow, Hanley, Mewhinney & Strauss, LLC; Campbell Global, LLC; Copper Rock Capital Partners LLC; Heitman LLC; Investment Counselors of Maryland, LLC; Landmark Partners, LLC, and Thompson, Siegel & Walmsley LLC. It works with boutique asset managers, and the Company leverages the resources within its organization to engage with its Affiliates and provide them with capabilities unavailable to specialist asset management firms. The Company works with its Affiliates to identify and execute upon opportunities for their businesses in areas, such as business line expansion and product development, as well as activities required for the operation of investment boutiques.

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