B. Riley Financial (NASDAQ:RILY – Get Rating) and Cohen & Steers (NYSE:CNS – Get Rating) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
Insider and Institutional Ownership
45.7% of B. Riley Financial shares are owned by institutional investors. Comparatively, 47.4% of Cohen & Steers shares are owned by institutional investors. 27.9% of B. Riley Financial shares are owned by insiders. Comparatively, 48.2% of Cohen & Steers shares are owned 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.
This is a summary of recent recommendations for B. Riley Financial and Cohen & Steers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|B. Riley Financial||0||0||0||0||N/A|
|Cohen & Steers||0||0||0||0||N/A|
Volatility and Risk
B. Riley Financial has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, Cohen & Steers has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.
B. Riley Financial pays an annual dividend of $4.00 per share and has a dividend yield of 9.3%. Cohen & Steers pays an annual dividend of $2.20 per share and has a dividend yield of 3.0%. B. Riley Financial pays out -211.6% of its earnings in the form of a dividend. Cohen & Steers pays out 53.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cohen & Steers has raised its dividend for 13 consecutive years. B. Riley Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares B. Riley Financial and Cohen & Steers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|B. Riley Financial||-3.78%||0.16%||0.02%|
|Cohen & Steers||33.77%||73.43%||37.93%|
Valuation & Earnings
This table compares B. Riley Financial and Cohen & Steers’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|B. Riley Financial||$1.74 billion||0.71||$445.05 million||($1.89)||-22.72|
|Cohen & Steers||$583.83 million||6.12||$211.40 million||$4.11||17.84|
B. Riley Financial has higher revenue and earnings than Cohen & Steers. B. Riley Financial is trading at a lower price-to-earnings ratio than Cohen & Steers, indicating that it is currently the more affordable of the two stocks.
Cohen & Steers beats B. Riley Financial on 9 of the 14 factors compared between the two stocks.
About B. Riley Financial
B. Riley Financial, Inc., through its subsidiaries, provides investment banking and financial services to corporate, institutional, and high net worth clients in North America, Australia, and Europe. The company operates in six segments: Capital Markets, Wealth Management, Auction and Liquidation, Financial Consulting, Principal Investments-Communications, and Brands. The Capital Markets segments offers investment banking, corporate finance, financial advisory, research, securities lending and sales, and trading services; merger and acquisitions, restructuring advisory, initial and secondary public offerings, and institutional private placements services; asset management services; and trades in equity securities. The Wealth Management segment provides wealth management and tax services. The Auction and Liquidation Segment offers retail store liquidation, and wholesale and industrial assets disposition services. The Financial Consulting segment provides bankruptcy, forensic accounting, litigation support, operations management and real estate consulting, and valuation and appraisal services. The Principal Investments-Communications segment provides consumer Internet access through United Online under the NetZero and Juno brands; VoIP communication and related products, and subscription services through magicJack; and mobile phone services and devices through Marconi Wireless. The Brands segments provides licensing of a brand investment portfolio, including Catherine Malandrino, English Laundry, Joan Vass, Kensie Girl, Limited Too, and Nanette Lepore. It also offers advisory services; brokerage services; senior secured and second lien secured loans to middle market public and the private U.S. companies; and consulting services. The company was formerly known as Great American Group, Inc. and changed its name to B. Riley Financial, Inc. in November 2014. The company was founded in 1973 and is headquartered in Los Angeles, California.
About Cohen & Steers
Cohen & Steers, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to institutional investors, including pension funds, endowments, and foundations. It manages separate client-focused equity, fixed income, multi-asset, and commodity portfolios through its subsidiaries. The firm launches and manages equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries. Through its subsidiaries, it also launches and manages hedge funds. The firm invests in public equity, fixed income, and commodity markets across the globe through its subsidiaries. Through its subsidiaries, it invests in companies operating in the real estate sector, including real estate investment trusts, infrastructure sector, and natural energy resources sector for its equity and fixed income investments. The firm also invests in preferred securities for its fixed income investments through its subsidiaries. Cohen & Steers, Inc. was founded in 1986 and is based in New York, with additional offices in London, United Kingdom; Central, Hong Kong; Tokyo, Japan; and Seattle, Washington.
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