Comparing PJT Partners (NYSE:PJT) and TPG (NASDAQ:TPG)

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

Profitability

This table compares PJT Partners and TPG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PJT Partners	7.79%	17.24%	12.31%
TPG	4.95%	16.98%	6.49%

Analyst Recommendations

This is a breakdown of recent recommendations for PJT Partners and TPG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PJT Partners	0	1	2	0	2.67
TPG	0	9	4	0	2.31

PJT Partners currently has a consensus target price of $89.50, indicating a potential upside of 15.96%. TPG has a consensus target price of $32.27, indicating a potential upside of 9.95%. Given PJT Partners’ stronger consensus rating and higher possible upside, equities analysts plainly believe PJT Partners is more favorable than TPG.

Insider & Institutional Ownership

73.4% of PJT Partners shares are held by institutional investors. Comparatively, 12.5% of TPG shares are held by institutional investors. 10.7% of PJT Partners shares are held by company insiders. Comparatively, 78.7% of TPG shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares PJT Partners and TPG’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PJT Partners	$1.09 billion	1.71	$164.77 million	$3.30	23.39
TPG	$2.00 billion	4.53	-$56.24 million	$0.07	419.29

PJT Partners has higher earnings, but lower revenue than TPG. PJT Partners is trading at a lower price-to-earnings ratio than TPG, indicating that it is currently the more affordable of the two stocks.

Dividends

PJT Partners pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. TPG pays an annual dividend of $0.88 per share and has a dividend yield of 3.0%. PJT Partners pays out 30.3% of its earnings in the form of a dividend. TPG pays out 1,257.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PJT Partners has increased its dividend for 1 consecutive years.

Risk & Volatility

PJT Partners has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, TPG has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Summary

PJT Partners beats TPG on 10 of the 17 factors compared between the two stocks.

About PJT Partners

PJT Partners Inc., an investment bank, provides various strategic and capital markets advisory, restructuring and special situations, and shareholder advisory services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers advisory services to clients on various transactions, including mergers and acquisitions (M&A), spin-offs, activism defense, contested M&A, joint ventures, minority investments, and divestitures. The company also advises private and public company boards and management teams on strategies for building productive investor relationships with a focus on shareholder engagement; and strategic investor relations; environmental, social, and governance matters; and other investor-related matters. In addition, it provides advisory services related to debt and acquisition financings; structured product offerings; public equity raises, including initial public offering and SPAC offerings; and private capital raises for early and later stage companies, as well as other capital structure related matters. Further, the company offers advisory services in restructurings and recapitalizations; and serving a range of companies, creditors, and financial sponsors on liability management and related capital raise transactions, including exchanges, recapitalizations, reorganizations, debt repurchases, and distressed mergers and acquisitions. Additionally, it provides private fund advisory and fundraising services for a range of investment strategies; and advisory services to GPs and LPs on liquidity and other structured solutions in the secondary market. The company was formerly known as Blackstone Advisory Inc. and changed its name to PJT Partners Inc. in March 2015. PJT Partners Inc. was incorporated in 2014 and is headquartered in New York, New York.

About TPG

TPG Inc. operates as an alternative asset manager in the United States and internationally. It offers investment management services to TPG Funds, limited partners, and other vehicles; 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. The company invests in private equity funds, real estate funds, hedge funds, and credit funds. TPG Inc. was founded in 1992 and is headquartered in Fort Worth, Texas. TPG Inc. is a subsidiary of TPG GP A, LLC.