Financial Engines (FNGN) and The Blackstone Group L.P. (BX) Financial Analysis
Financial Engines (NASDAQ: FNGN) and The Blackstone Group L.P. (NYSE:BX) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Financial Engines pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. The Blackstone Group L.P. pays an annual dividend of $2.16 per share and has a dividend yield of 6.5%. Financial Engines pays out 43.8% of its earnings in the form of a dividend. The Blackstone Group L.P. pays out 97.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The Blackstone Group L.P. has increased its dividend for 4 consecutive years. The Blackstone Group L.P. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Financial Engines and The Blackstone Group L.P.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Financial Engines||$458.22 million||5.07||$84.14 million||$0.64||57.50|
|The Blackstone Group L.P.||$6.33 billion||3.43||$1.44 billion||$2.22||15.06|
The Blackstone Group L.P. has higher revenue and earnings than Financial Engines. The Blackstone Group L.P. is trading at a lower price-to-earnings ratio than Financial Engines, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
46.6% of The Blackstone Group L.P. shares are held by institutional investors. 16.0% of Financial Engines shares are held by insiders. Comparatively, 1.0% of The Blackstone Group L.P. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Financial Engines and The Blackstone Group L.P., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Blackstone Group L.P.||0||1||8||0||2.89|
Financial Engines currently has a consensus price target of $43.00, indicating a potential upside of 16.85%. The Blackstone Group L.P. has a consensus price target of $37.78, indicating a potential upside of 12.97%. Given Financial Engines’ stronger consensus rating and higher probable upside, research analysts plainly believe Financial Engines is more favorable than The Blackstone Group L.P..
Volatility and Risk
Financial Engines has a beta of 2.2, suggesting that its share price is 120% more volatile than the S&P 500. Comparatively, The Blackstone Group L.P. has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.
This table compares Financial Engines and The Blackstone Group L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Blackstone Group L.P.||22.88%||18.97%||8.76%|
The Blackstone Group L.P. beats Financial Engines on 10 of the 17 factors compared between the two stocks.
About Financial Engines
Financial Engines, Inc. is a provider of independent, technology-enabled financial advisory services, discretionary portfolio management, personalized investment advice, financial and retirement income planning, and financial education and guidance. The Company offers personalized plans for saving, investing, and generating retirement income, as well as by providing assessments of retirement income needs and readiness. The Company’s advice and planning services cover employer-sponsored defined contribution (DC) accounts (401(k), 457, and 403(b) plans), individual retirement account (IRA) accounts, and taxable accounts. For individuals, the Company provides discretionary portfolio management, personalized investment advice, financial and retirement income planning, financial education and guidance. The Company maintains two types of relationships with individuals: DC plan participants in the workplace and Individuals outside the workplace.
About The Blackstone Group L.P.
The Blackstone Group L.P. is a global alternative asset manager. The Company’s alternative asset management businesses include investment vehicles focused on private equity, non-investment grade credit, secondary private equity funds of funds and multi-asset class strategies. It operates through four segments: Private Equity, Real Estate, Hedge Fund Solutions and Credit. The Private Equity segment includes its corporate private equity business, which consists of its corporate private equity funds, Blackstone Capital Partners (BCP) funds, its sector-focused corporate private equity funds, including its energy-focused funds, Blackstone Energy Partners (BEP) funds and its core private equity fund. The Blackstone Real Estate Partners funds target a range of opportunistic real estate and real estate related investments. The Hedge Fund Solutions segment consists of Blackstone Alternative Asset Management (BAAM). The Credit segment consists principally of GSO Capital Partners LP (GSO).
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