Analyzing Hamilton Lane (HLNE) and Fifth Street Asset Management (FSAM)
Hamilton Lane (NASDAQ: HLNE) and Fifth Street Asset Management (OTCMKTS:FSAM) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.
This is a breakdown of current recommendations for Hamilton Lane and Fifth Street Asset Management, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fifth Street Asset Management||0||0||0||0||N/A|
Hamilton Lane presently has a consensus target price of $23.50, indicating a potential downside of 33.60%. Given Hamilton Lane’s higher possible upside, equities analysts clearly believe Hamilton Lane is more favorable than Fifth Street Asset Management.
Hamilton Lane pays an annual dividend of $0.70 per share and has a dividend yield of 2.0%. Fifth Street Asset Management pays an annual dividend of $0.13 per share and has a dividend yield of 9.8%. Fifth Street Asset Management pays out -92.9% of its earnings in the form of a dividend.
Institutional and Insider Ownership
27.9% of Hamilton Lane shares are owned by institutional investors. Comparatively, 8.6% of Fifth Street Asset Management shares are owned by institutional investors. 62.9% of Hamilton Lane shares are owned by insiders. Comparatively, 85.4% of Fifth Street Asset Management shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Hamilton Lane and Fifth Street Asset Management’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hamilton Lane||$179.82 million||9.29||$610,000.00||N/A||N/A|
|Fifth Street Asset Management||$82.55 million||0.82||-$1.53 million||($0.14)||-9.43|
Hamilton Lane has higher revenue and earnings than Fifth Street Asset Management.
This table compares Hamilton Lane and Fifth Street Asset Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fifth Street Asset Management||-20.92%||-626.41%||-2.71%|
Hamilton Lane beats Fifth Street Asset Management on 9 of the 12 factors compared between the two stocks.
Hamilton Lane Company Profile
Hamilton Lane Incorporated is a global private markets investment solutions provider. The Company works with its clients to conceive, structure, build out, manage and monitor portfolios of private markets funds and direct investments, and it helps them access a set of such investment opportunities around the world. It offers a range of investment solutions across a range of private markets, including private equity, private credit, real estate, infrastructure, natural resources, growth equity and venture capital. These solutions are constructed from a range of investment types, including primary investments in funds managed by third-party managers, direct/co-investments alongside such funds and acquisitions of secondary stakes in such funds, with a range of its clients utilizing multiple investment types. These solutions are offered in a range of formats covering some or all phases of private markets investment programs, such as Customized Separate Accounts and Specialized Funds.
Fifth Street Asset Management Company Profile
Fifth Street Asset Management Inc. is an alternative asset manager. The Company provides asset management services to its investment funds (the Fifth Street Funds or the funds), which consist of Fifth Street Finance Corp. (FSC) and Fifth Street Senior Floating Rate Corp. (FSFR), both publicly-traded business development companies (together, the BDCs). Its segment provides asset management services to the Fifth Street Funds. The Company conducts all of its operations through its subsidiaries, Fifth Street Management LLC (FSM), Fifth Street CLO Management LLC (CLO Management) and FSCO GP LLC (FSCO GP). The funds, managed by the Company, provide financing solutions to small and mid-sized companies across their capital structures, mainly in connection with investments by private equity sponsors. It provides credit solutions across the capital structure, including one-stop financing, unitranche debt, senior secured debt, mezzanine debt, equity co-investments and venture debt financing.
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