Analyzing Moelis & Company (MC) & The Competition

Moelis & Company (NYSE:MC) is one of 1,746 publicly-traded companies in the “Capital Markets” industry, but how does it weigh in compared to its competitors? We will compare Moelis & Company to similar companies based on the strength of its analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Volatility & Risk

Moelis & Company has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500. Comparatively, Moelis & Company’s competitors have a beta of 0.81, meaning that their average stock price is 19% less volatile than the S&P 500.

Dividends

Moelis & Company pays an annual dividend of $2.60 per share and has a dividend yield of 4.5%. Moelis & Company pays out 90.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 30.1% of their earnings in the form of a dividend. Moelis & Company has raised its dividend for 1 consecutive years.

Analyst Recommendations

This is a summary of current recommendations for Moelis & Company and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Moelis & Company	0	6	2	0	2.25
Moelis & Company Competitors	5524	20054	22384	636	2.37

Moelis & Company presently has a consensus price target of $68.83, indicating a potential upside of 18.48%. As a group, “Capital Markets” companies have a potential upside of 27.69%. Given Moelis & Company’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Moelis & Company has less favorable growth aspects than its competitors.

Profitability

This table compares Moelis & Company and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Moelis & Company	14.50%	39.59%	17.04%
Moelis & Company Competitors	300.84%	79.27%	3.63%

Institutional & Insider Ownership

91.5% of Moelis & Company shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 6.3% of Moelis & Company shares are held by insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Moelis & Company and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Moelis & Company	$1.57 billion	$233.04 million	20.24
Moelis & Company Competitors	$2.49 billion	$394.23 million	15.40

Moelis & Company’s competitors have higher revenue and earnings than Moelis & Company. Moelis & Company is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Moelis & Company competitors beat Moelis & Company on 10 of the 15 factors compared.

About Moelis & Company

Moelis & Co. operates as a holding company. It engages in the provision of financial advisory, capital raising and asset management services to a client base including corporations, governments, sovereign wealth funds and financial sponsors. The firm focuses on clients including large public multinational corporations, middle market private companies, financial sponsors, entrepreneurs and governments. The company was founded by Kenneth David Moelis, Navid Mahmoodzadegan, Jeffrey Raich and Elizabeth Ann Crain in July 2007 and is headquartered in New York, NY.