Contrasting Cannae (NYSE:CNNE) and Janus Henderson Group (NYSE:JHG)

Janus Henderson Group (NYSE:JHG) and Cannae (NYSE:CNNE) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares Janus Henderson Group and Cannae’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%
Cannae	-108.39%	-23.16%	-18.38%

Volatility and Risk

Janus Henderson Group has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, Cannae has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Dividends

Janus Henderson Group pays an annual dividend of $1.60 per share and has a dividend yield of 3.3%. Cannae pays an annual dividend of $0.60 per share and has a dividend yield of 4.5%. Janus Henderson Group pays out 30.4% of its earnings in the form of a dividend. Cannae pays out -7.8% 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. Janus Henderson Group has raised its dividend for 1 consecutive years. Cannae is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current recommendations and price targets for Janus Henderson Group and Cannae, 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
Cannae	1	1	2	0	2.25

Janus Henderson Group currently has a consensus target price of $47.67, suggesting a potential downside of 2.83%. Cannae has a consensus target price of $20.50, suggesting a potential upside of 53.56%. Given Cannae’s higher possible upside, analysts plainly believe Cannae is more favorable than Janus Henderson Group.

Valuation & Earnings

This table compares Janus Henderson Group and Cannae”s top-line 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	2.45	$815.90 million	$5.26	9.33
Cannae	$452.50 million	1.45	-$304.60 million	($7.73)	-1.73

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

Insider & Institutional Ownership

87.9% of Janus Henderson Group shares are held by institutional investors. Comparatively, 88.1% of Cannae shares are held by institutional investors. 19.6% of Janus Henderson Group shares are held by company insiders. Comparatively, 10.9% of Cannae shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Janus Henderson Group beats Cannae on 14 of the 18 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 Cannae

Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. was founded in 2014 and is based in Las Vegas, Nevada.