Credit Suisse Group (CS) & Greenhill & Co. (GHL) Head-To-Head Analysis
Credit Suisse Group (NYSE: CS) and Greenhill & Co. (NYSE:GHL) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Volatility & Risk
Credit Suisse Group has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Greenhill & Co. has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.
Credit Suisse Group pays an annual dividend of $0.25 per share and has a dividend yield of 1.5%. Greenhill & Co. pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. Credit Suisse Group pays out 46.3% of its earnings in the form of a dividend. Greenhill & Co. pays out -71.4% 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.
This is a breakdown of recent ratings and price targets for Credit Suisse Group and Greenhill & Co., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Credit Suisse Group||1||1||10||0||2.75|
|Greenhill & Co.||3||3||0||0||1.50|
Greenhill & Co. has a consensus target price of $14.83, indicating a potential downside of 44.75%. Given Greenhill & Co.’s higher possible upside, analysts plainly believe Greenhill & Co. is more favorable than Credit Suisse Group.
Valuation and Earnings
This table compares Credit Suisse Group and Greenhill & Co.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Credit Suisse Group||$31.90 billion||1.34||-$999.02 million||$0.54||30.98|
|Greenhill & Co.||$239.18 million||2.81||-$26.65 million||($0.28)||-95.89|
Greenhill & Co. has lower revenue, but higher earnings than Credit Suisse Group. Greenhill & Co. is trading at a lower price-to-earnings ratio than Credit Suisse Group, indicating that it is currently the more affordable of the two stocks.
This table compares Credit Suisse Group and Greenhill & Co.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Credit Suisse Group||-2.62%||3.52%||0.19%|
|Greenhill & Co.||-7.24%||-0.10%||-0.05%|
Institutional and Insider Ownership
3.0% of Credit Suisse Group shares are held by institutional investors. Comparatively, 96.9% of Greenhill & Co. shares are held by institutional investors. 8.3% of Greenhill & Co. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Credit Suisse Group beats Greenhill & Co. on 10 of the 16 factors compared between the two stocks.
Credit Suisse Group Company Profile
Credit Suisse Group AG, together with its subsidiaries, provides various financial services worldwide. It operates through six segments: Swiss Universal Bank, International Wealth Management, Asia Pacific, Global Markets, Investment Banking & Capital Markets, and Strategic Resolution Unit. The company offers private banking and wealth management solutions, including advisory, investment, financial planning, succession planning, and trust services; and financing and lending, and multi-shore platform solutions. It also provides traditional and structured lending, payment, foreign exchange, capital goods leasing, merger and acquisition, syndication, structured finance, commodity trade finance, trade finance, structured trade finance, export finance, factoring, fund management and administration, fund design, custody, ship and aviation, securities, cash, and treasury services. In addition, the company offers asset management products; equity and debt underwriting, and advisory services; cash equities, equity derivatives, and convertibles, as well as other services; fixed income products, such as credit, securitized, macro, emerging markets, financing, structured credit, and other products. Further, it provides HOLT, a framework for assessing the performance of approximately 20,000 companies; and equity and fixed income research services. As of December 31, 2017 the company had 378 offices and branches. It serves private, corporate, and institutional clients; ultra-high-net-worth individuals, high-net-worth individuals, and affluent and retail clients; corporate clients, small and medium-sized enterprises, external asset managers, and financial institutions; pension funds, governments, foundations and endowments, corporations, entrepreneurs, private individuals, financial sponsors, and sovereign clients. The company was founded in 1856 and is based in Zurich, Switzerland.
Greenhill & Co. Company Profile
Greenhill & Co., Inc., together with its subsidiaries, operates as an independent investment bank for corporations, partnerships, institutions, and governments worldwide. The company provides financial advisory services primarily related to mergers and acquisitions, restructurings, financings, and capital raisings. It is also involved in the provision of advisory services to clients in relation to divestitures, spin-offs, and other strategic transactions, as well as various stages of these transactions ranging from initial structuring to final execution. In addition, the company advises clients on strategic matters, such as activist response, defensive tactics, special committee projects, licensing deals, joint ventures, valuation, negotiation tactics, industry dynamics, structuring alternatives, and timing and pricing of transactions, as well as financing alternatives. Further, it advises debtors, creditors, governments, pension funds, and other stakeholders in companies experiencing financial distress, as well as potential acquirers of distressed companies and assets. Additionally, the company assists the clients in identifying and capitalizing on potential incremental sources of value, as well as who seek court-assisted reorganizations by developing and seeking approval for plans of reorganization. It advises on capital structures and sales or recapitalizations; other financing matters, including debt issuances, equity financings, and exchange offers; and initial public offerings and other equity capital market transactions. The company also assists general partners and sponsors in raising capital for new private funds; and provides related advisory services to pension funds, sovereign wealth funds, endowments, and other institutional investors, as well as on primary and secondary market transactions, and real estate funds. Greenhill & Co., Inc. was founded in 1996 and is headquartered in New York, New York.
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