Critical Analysis: PJT Partners (PJT) & Victory Capital (VCTR)
PJT Partners (NYSE:PJT) and Victory Capital (NASDAQ:VCTR) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Institutional & Insider Ownership
62.5% of PJT Partners shares are owned by institutional investors. Comparatively, 16.2% of Victory Capital shares are owned by institutional investors. 8.0% of PJT Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares PJT Partners and Victory Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. Victory Capital does not pay a dividend. PJT Partners pays out 13.0% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares PJT Partners and Victory Capital’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PJT Partners||$499.28 million||1.87||-$28.32 million||$1.54||29.53|
|Victory Capital||$409.63 million||1.31||$25.82 million||$1.25||6.33|
Victory Capital has lower revenue, but higher earnings than PJT Partners. Victory Capital is trading at a lower price-to-earnings ratio than PJT Partners, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for PJT Partners and Victory Capital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PJT Partners presently has a consensus price target of $57.67, suggesting a potential upside of 26.80%. Victory Capital has a consensus price target of $13.81, suggesting a potential upside of 74.62%. Given Victory Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Victory Capital is more favorable than PJT Partners.
PJT Partners beats Victory Capital on 9 of the 15 factors compared between the two stocks.
PJT Partners Company Profile
PJT Partners Inc. provides various strategic advisory, restructuring and special situations, and private fund advisory and placement services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers a range of financial advisory and transaction execution capability, including mergers and acquisitions, joint ventures, minority investments, asset swaps, divestitures, takeover defenses, corporate finance advisory, private placements, and distressed sales. The company also advices companies, creditors, and financial sponsors on recapitalizations, reorganizations, exchange offers, debt repurchases, capital raises, and distressed mergers and acquisitions. In addition, it offers private fund advisory and placement services for a range of investment strategies, including private equity, hedge fund, real estate, and secondary advisory. The company was formerly known as Blackstone Advisory Inc. and changed its name to PJT Partners Inc. in March 2015. PJT Partners Inc. was incorporated in 2014 and is headquartered in New York, New York.
Victory Capital Company Profile
Victory Capital Holdings, Inc., together with its subsidiaries, operates as an independent investment management company in the United States. It offers investment advisory, fund administration, and distribution services through broker-dealers, retirement platforms, and registered investment advisor networks. As of September 30, 2017, its franchises and solutions platform managed a set of 70 investment strategies for a range of institutional and retail clients. The company was founded in 2013 and is based in Brooklyn, Ohio.
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