Janus Capital Group (NYSE: JNS) and Brookfield Asset Management (NYSE:BAM) are both mid-cap investment management & fund operators – nec companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Earnings and Valuation

This table compares Janus Capital Group and Brookfield Asset Management’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Janus Capital Group N/A N/A N/A $0.76 18.64
Brookfield Asset Management $24.41 billion 1.72 $1.65 billion $0.46 95.30

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

Profitability

This table compares Janus Capital Group and Brookfield Asset Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Janus Capital Group 12.54% 7.26% 4.48%
Brookfield Asset Management 1.70% 0.86% 0.34%

Analyst Recommendations

This is a summary of current recommendations and price targets for Janus Capital Group and Brookfield Asset Management, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Janus Capital Group 1 1 0 0 1.50
Brookfield Asset Management 0 0 6 0 3.00

Janus Capital Group currently has a consensus price target of $13.00, indicating a potential downside of 8.26%. Brookfield Asset Management has a consensus price target of $47.00, indicating a potential upside of 7.21%. Given Brookfield Asset Management’s stronger consensus rating and higher probable upside, analysts clearly believe Brookfield Asset Management is more favorable than Janus Capital Group.

Insider and Institutional Ownership

90.2% of Janus Capital Group shares are held by institutional investors. Comparatively, 54.6% of Brookfield Asset Management shares are held by institutional investors. 2.1% of Janus Capital Group shares are held by company 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.

Dividends

Janus Capital Group pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. Brookfield Asset Management pays an annual dividend of $0.56 per share and has a dividend yield of 1.3%. Janus Capital Group pays out 57.9% of its earnings in the form of a dividend. Brookfield Asset Management pays out 121.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Janus Capital Group has raised its dividend for 6 consecutive years and Brookfield Asset Management has raised its dividend for 5 consecutive years. Janus Capital Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Janus Capital Group beats Brookfield Asset Management on 9 of the 13 factors compared between the two stocks.

About Janus Capital Group

Janus Capital Group Inc. provides investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, separate accounts, other pooled investment vehicles, exchange-traded products (ETPs) and subadvised relationships (collectively referred to as investment products) in both domestic and international markets. The Company operates through investment management business segment. The Company provides investment management solutions across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives. As of December 31, 2016, the Company’s investment products were distributed through three primary channels: intermediary, institutional and self-directed. Each distribution channel focuses on specific investor groups and the requirements of each group.

About Brookfield Asset Management

Brookfield Asset Management Inc. is an alternative asset manager. The Company operates in eight segments. The Asset Management segment manages its listed partnerships, private funds and public markets on behalf of its clients. The Property segment includes the ownership, operation and development of office, retail and other properties. The Renewable power segment operates and develops hydroelectric, wind power and other generating facilities. The Infrastructure segment includes the ownership, operation and development of utilities and agricultural operations, among others. The Residential development segment includes homebuilding, condominium development and land development. The Service activities segment includes construction management and contracting services and property services. The Private equity segment includes the investments and operations overseen by its private equity group. The Corporate activities segment includes the allocation of capital to its operating platforms.

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