Analyzing Medley Management (MDLY) & Blackstone Group (BX)
Blackstone Group (NYSE: BX) and Medley Management (NYSE:MDLY) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.
Earnings and Valuation
This table compares Blackstone Group and Medley Management’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Blackstone Group||$5.13 billion||3.90||$1.04 billion||$2.31||13.73|
|Medley Management||$76.03 million||0.47||$990,000.00||$0.22||29.55|
This table compares Blackstone Group and Medley Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Blackstone Group pays an annual dividend of $1.76 per share and has a dividend yield of 5.5%. Medley Management pays an annual dividend of $0.80 per share and has a dividend yield of 12.3%. Blackstone Group pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medley Management pays out 363.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blackstone Group has increased its dividend for 4 consecutive years.
Institutional & Insider Ownership
46.9% of Blackstone Group shares are held by institutional investors. Comparatively, 56.9% of Medley Management shares are held by institutional investors. 1.0% of Blackstone Group shares are held by insiders. Comparatively, 5.1% of Medley Management shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of recent ratings and price targets for Blackstone Group and Medley Management, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Blackstone Group currently has a consensus target price of $38.56, suggesting a potential upside of 21.55%. Medley Management has a consensus target price of $9.25, suggesting a potential upside of 42.31%. Given Medley Management’s higher probable upside, analysts plainly believe Medley Management is more favorable than Blackstone Group.
Volatility & Risk
Blackstone Group has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Medley Management has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.
Blackstone Group beats Medley Management on 10 of the 17 factors compared between the two stocks.
About Blackstone Group
The Blackstone Group L.P. is a global alternative asset manager. The Company’s alternative asset management businesses include investment vehicles focused on private equity, non-investment grade credit, secondary private equity funds of funds and multi-asset class strategies. It operates through four segments: Private Equity, Real Estate, Hedge Fund Solutions and Credit. The Private Equity segment includes its corporate private equity business, which consists of its corporate private equity funds, Blackstone Capital Partners (BCP) funds, its sector-focused corporate private equity funds, including its energy-focused funds, Blackstone Energy Partners (BEP) funds and its core private equity fund. The Blackstone Real Estate Partners funds target a range of opportunistic real estate and real estate related investments. The Hedge Fund Solutions segment consists of Blackstone Alternative Asset Management (BAAM). The Credit segment consists principally of GSO Capital Partners LP (GSO).
About Medley Management
Medley Management Inc. is an asset management firm offering yield solutions to retail and institutional investors. The Company operates in the investment management segment. It is focused on credit-related investment strategies, primarily originating senior secured loans to private middle market companies in the United States. The Company generally holds these loans to maturity. Its national direct origination franchise provides capital to the middle market in the United States. The Company has over $4.8 billion of assets under management (AUM) in approximately two business development companies (BDCs), Medley Capital Corporation (MCC) and Sierra Income Corporation (SIC), as well as private investment vehicles. It has over $5 billion of AUM. The Company provides capital to over 300 companies across approximately 35 industries in North America. The Company’s long-dated private funds include MOF I, MOF II and MOF III. Its private funds are managed through partnership structures
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