Financial Comparison: PJT Partners (NYSE:PJT) versus Deutsche Boerse (OTCMKTS:DBOEY)

Deutsche Boerse (OTCMKTS:DBOEY) and PJT Partners (NYSE:PJT) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Dividends

Deutsche Boerse pays an annual dividend of $0.29 per share and has a dividend yield of 0.9%. PJT Partners pays an annual dividend of $1.00 per share and has a dividend yield of 0.6%. Deutsche Boerse pays out 21.3% of its earnings in the form of a dividend. PJT Partners pays out 13.7% 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.

Institutional & Insider Ownership

89.2% of PJT Partners shares are owned by institutional investors. 11.0% of PJT Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Deutsche Boerse and PJT Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Boerse	1	2	3	0	2.33
PJT Partners	1	3	3	0	2.29

PJT Partners has a consensus target price of $177.50, indicating a potential upside of 3.37%. Given PJT Partners’ higher probable upside, analysts clearly believe PJT Partners is more favorable than Deutsche Boerse.

Profitability

This table compares Deutsche Boerse and PJT Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deutsche Boerse	33.04%	20.33%	0.64%
PJT Partners	10.57%	32.66%	18.28%

Earnings and Valuation

This table compares Deutsche Boerse and PJT Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Boerse	$6.82 billion	8.55	$2.26 billion	$1.36	23.78
PJT Partners	$1.71 billion	2.56	$180.12 million	$7.31	23.49

Deutsche Boerse has higher revenue and earnings than PJT Partners. PJT Partners is trading at a lower price-to-earnings ratio than Deutsche Boerse, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Deutsche Boerse has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, PJT Partners has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Summary

PJT Partners beats Deutsche Boerse on 8 of the 15 factors compared between the two stocks.

About Deutsche Boerse

Deutsche Börse AG operates as an exchange organization in Europe, America, and the Asia-Pacific. The company operates through four segments: Data & Analytics; Trading & Clearing; Fund Services; and Securities Services. It engages in the trading of derivatives, electricity and gas products, emission rights, foreign exchange, and commodity products; operating EEX and 360T over the counter trading platform for financial instruments, such as foreign exchange, money market, and interest rate products; and operating as a central counterparty. The company also operates in the cash market through Xetra, Börse Frankfurt, and Tradegate trading venues; Qontigo, an integrated suite of front-to-back investment management solution; and a central counterparty for equities and bonds, as well as provides pre-ipo and listing services. In addition, it offers custody and settlement services for securities; investment fund services; connectivity services; and global securities funding and financing, and collateral and liquidity management, as well as secured money, market transaction, and repos and securities lending transaction services. Further, the company provides order routing, settlement, asset management, and custody; investment distribution and placement; infrastructure and post-trading; index, analytics, and risk; securities transactions settlement; securities custody and administration; and market data and analytics services. Additionally, it operates third clearing house Nodal Clear; and specialized software as a service platform for trading participants and digital business platform, as well as offers information technology solutions, including financial market, commodities market, and network connectivity solutions under the Deutsche Börse and 7 Market Technology brands. The company was founded in 1585 and is headquartered in Eschborn, Germany.

About PJT Partners

PJT Partners Inc., an investment bank, provides various strategic and capital markets advisory, restructuring and special situations, and shareholder advisory services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers advisory services to clients on various transactions, including mergers and acquisitions (M&A), spin-offs, activism defense, contested M&A, joint ventures, minority investments, and divestitures. The company also advises private and public company boards and management teams on strategies for building productive investor relationships with a focus on shareholder engagement; and strategic investor relations; environmental, social, and governance matters; and other investor-related matters. In addition, it provides advisory services related to debt and acquisition financings; structured product offerings; public equity raises, including initial public offering and SPAC offerings; and private capital raises for early and later stage companies, as well as other capital structure related matters. Further, the company offers advisory services in financial restructurings and reorganizations; liability management; distressed mergers and acquisitions; and to management teams, corporate boards, sponsors and creditors. Additionally, it provides private fund advisory and fundraising services for a range of investment strategies; and advisory services to general and partners on liquidity and other structured solutions. 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.