Analyzing Sprott (NYSE:SII) & Janus Henderson Group (NYSE:JHG)

Janus Henderson Group (NYSE:JHG) and Sprott (NYSE:SII) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Insider & Institutional Ownership

87.9% of Janus Henderson Group shares are owned by institutional investors. Comparatively, 28.3% of Sprott shares are owned by institutional investors. 20.4% of Janus Henderson Group shares are owned by insiders. Comparatively, 18.3% of Sprott shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Janus Henderson Group and Sprott’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Janus Henderson Group	25.83%	14.70%	9.60%
Sprott	23.26%	15.01%	11.97%

Dividends

Janus Henderson Group pays an annual dividend of $1.60 per share and has a dividend yield of 3.2%. Sprott pays an annual dividend of $1.60 per share and has a dividend yield of 1.3%. Janus Henderson Group pays out 30.4% of its earnings in the form of a dividend. Sprott 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. Janus Henderson Group has raised its dividend for 1 consecutive years and Sprott has raised its dividend for 1 consecutive years. Janus Henderson Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Janus Henderson Group and Sprott”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Janus Henderson Group	$3.10 billion	2.47	$815.90 million	$5.26	9.43
Sprott	$178.65 million	17.53	$49.29 million	$1.95	62.26

Janus Henderson Group has higher revenue and earnings than Sprott. Janus Henderson Group is trading at a lower price-to-earnings ratio than Sprott, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Janus Henderson Group and Sprott, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Janus Henderson Group	0	6	3	2	2.64
Sprott	0	2	2	0	2.50

Janus Henderson Group currently has a consensus target price of $47.67, indicating a potential downside of 3.86%. Sprott has a consensus target price of $132.00, indicating a potential upside of 8.73%. Given Sprott’s higher probable upside, analysts plainly believe Sprott is more favorable than Janus Henderson Group.

Risk and Volatility

Janus Henderson Group has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Sprott has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Summary

Janus Henderson Group beats Sprott on 12 of the 17 factors compared between the two stocks.

About Janus Henderson Group

Janus Henderson Group plc is an asset management holding entity. Through its subsidiaries, the firm provides services to institutional, retail clients, and high net worth clients. It manages separate client-focused equity and fixed income portfolios. The firm also manages equity, fixed income, and balanced mutual funds for its clients. It invests in public equity and fixed income markets, as well as invests in real estate and private equity. Janus Henderson Group plc was founded in 1934 and is based in London, United Kingdom with additional offices in Jersey, United Kingdom and Sydney, Australia.

About Sprott

Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.