Head-To-Head Contrast: Moelis & Company (MC) and Its Competitors

Moelis & Company (NYSE: MC) is one of 52 public companies in the “Investment advice” industry, but how does it compare to its competitors? We will compare Moelis & Company to similar companies based on the strength of its institutional ownership, analyst recommendations, dividends, earnings, risk, profitability and valuation.

Institutional & Insider Ownership

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54.8% of Moelis & Company shares are held by institutional investors. Comparatively, 48.2% of shares of all “Investment advice” companies are held by institutional investors. 52.6% of Moelis & Company shares are held by company insiders. Comparatively, 20.7% of shares of all “Investment advice” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Moelis & Company $684.61 million $29.40 million 23.12
Moelis & Company Competitors $2.42 billion $277.86 million 14.48

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

Volatility and Risk

Moelis & Company has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Moelis & Company’s competitors have a beta of 1.21, meaning that their average share price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Moelis & Company and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moelis & Company 0 2 3 0 2.60
Moelis & Company Competitors 325 1722 2142 114 2.48

Moelis & Company currently has a consensus target price of $49.20, indicating a potential downside of 7.08%. As a group, “Investment advice” companies have a potential upside of 16.29%. Given Moelis & Company’s competitors higher probable upside, analysts clearly believe Moelis & Company has less favorable growth aspects than its competitors.

Dividends

Moelis & Company pays an annual dividend of $1.88 per share and has a dividend yield of 3.6%. Moelis & Company pays out 82.1% 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, “Investment advice” companies pay a dividend yield of 3.6% and pay out 47.5% of their earnings in the form of a dividend. Moelis & Company has increased its dividend for 3 consecutive years. Moelis & Company lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Moelis & Company and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Moelis & Company 4.29% 47.12% 21.75%
Moelis & Company Competitors 12.38% 28.06% 10.28%

Summary

Moelis & Company beats its competitors on 8 of the 15 factors compared.

Moelis & Company Company Profile

Moelis & Company, an investment bank, provides strategic and financial advisory services in the United States and internationally. It advises clients in the areas of mergers and acquisitions, recapitalizations and restructurings, capital markets advisory, and other corporate finance matters. The company offers its services to public multinational corporations, governments, financial sponsors, middle market private companies, and individual entrepreneurs. It has strategic alliances with Sumitomo Mitsui Banking Corporation and SMBC Nikko Securities Inc.; and Alfaro, Dávila y Ríos, S.C. Moelis & Company was founded in 2007 and is headquartered in New York, New York.

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