Manning & Napier (NYSE: MN) and The Blackstone Group L.P. (NYSE:BX) are both investment management companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings for Manning & Napier and The Blackstone Group L.P., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manning & Napier 0 2 0 0 2.00
The Blackstone Group L.P. 0 1 8 0 2.89

Manning & Napier presently has a consensus price target of $4.00, indicating a potential upside of 3.90%. The Blackstone Group L.P. has a consensus price target of $38.56, indicating a potential upside of 21.32%. Given The Blackstone Group L.P.’s stronger consensus rating and higher probable upside, analysts plainly believe The Blackstone Group L.P. is more favorable than Manning & Napier.

Risk & Volatility

Manning & Napier has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, The Blackstone Group L.P. has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.

Earnings & Valuation

This table compares Manning & Napier and The Blackstone Group L.P.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Manning & Napier $248.94 million 0.23 $9.27 million $0.23 16.74
The Blackstone Group L.P. $5.13 billion 3.91 $1.04 billion $2.32 13.70

The Blackstone Group L.P. has higher revenue and earnings than Manning & Napier. The Blackstone Group L.P. is trading at a lower price-to-earnings ratio than Manning & Napier, indicating that it is currently the more affordable of the two stocks.

Dividends

Manning & Napier pays an annual dividend of $0.32 per share and has a dividend yield of 8.3%. The Blackstone Group L.P. pays an annual dividend of $1.76 per share and has a dividend yield of 5.5%. Manning & Napier pays out 139.1% 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. pays out 75.9% 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.

Profitability

This table compares Manning & Napier and The Blackstone Group L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manning & Napier 3.30% 30.20% 18.84%
The Blackstone Group L.P. 22.88% 19.71% 8.71%

Institutional and Insider Ownership

56.9% of Manning & Napier shares are held by institutional investors. Comparatively, 47.7% of The Blackstone Group L.P. shares are held by institutional investors. 2.5% of Manning & Napier shares are held by company insiders. Comparatively, 1.0% of The Blackstone Group L.P. shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

The Blackstone Group L.P. beats Manning & Napier on 11 of the 17 factors compared between the two stocks.

About Manning & Napier

Manning & Napier, Inc. is an independent investment management company. The Company operates through investment management industry segment. It provides a range of investment solutions through separately managed accounts, mutual funds and collective investment trust funds, as well as a range of consultative services. It offers equity, fixed income and alternative strategies, as well as a range of blended asset portfolios, such as life cycle funds. It serves a client base of high net worth individuals and institutions, including 401(k) plans, pension plans, Taft-Hartley plans (Taft-Hartley), endowments and foundations. It offers its investment management capabilities through direct sales to high net worth individuals and institutions, as well as through third-party intermediaries, platforms and institutional investment consultants. Its investment management offerings include approximately 40 separate account composites, and over 60 mutual funds and collective investment trusts.

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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