Head to Head Review: Blackstone Group (BX) versus Moelis & Co (MC)
Moelis & Co (NYSE:MC) and Blackstone Group (NYSE:BX) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Moelis & Co pays an annual dividend of $1.88 per share and has a dividend yield of 4.9%. Blackstone Group pays an annual dividend of $2.56 per share and has a dividend yield of 7.8%. Moelis & Co pays out 82.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blackstone Group pays out 91.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Moelis & Co has raised its dividend for 3 consecutive years and Blackstone Group has raised its dividend for 5 consecutive years. Blackstone Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Moelis & Co has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500. Comparatively, Blackstone Group has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Moelis & Co and Blackstone Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Moelis & Co||0||2||4||0||2.67|
Moelis & Co presently has a consensus target price of $60.67, suggesting a potential upside of 56.64%. Blackstone Group has a consensus target price of $43.32, suggesting a potential upside of 32.43%. Given Moelis & Co’s higher possible upside, equities analysts clearly believe Moelis & Co is more favorable than Blackstone Group.
This table compares Moelis & Co and Blackstone Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Moelis & Co||9.39%||53.14%||24.46%|
Insider & Institutional Ownership
75.6% of Moelis & Co shares are held by institutional investors. Comparatively, 50.1% of Blackstone Group shares are held by institutional investors. 29.9% of Moelis & Co shares are held by company insiders. Comparatively, 1.0% of Blackstone Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Moelis & Co and Blackstone Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Moelis & Co||$684.61 million||3.18||$29.40 million||$2.29||16.91|
|Blackstone Group||$7.12 billion||3.04||$1.47 billion||$2.81||11.64|
Blackstone Group has higher revenue and earnings than Moelis & Co. Blackstone Group is trading at a lower price-to-earnings ratio than Moelis & Co, indicating that it is currently the more affordable of the two stocks.
Moelis & Co beats Blackstone Group on 9 of the 17 factors compared between the two stocks.
Moelis & Co Company Profile
Moelis & Company is a global investment bank. The firm provides services relating to mergers & acquisitions, recapitalization & restructuring, capital markets and financial institution advisory; private funds; shareholder defense and strategic alliances. The firm's expertise is into global energy; IPO advisory; technology, media, telecommunication sectors. The firm serves clients from 19 geographic locations in the Americas, Europe, the Middle East, Asia and Australia. The firm supports clients through all phases of the business cycle. Moelis & Company was founded in 2007 and is headquartered in New York, New York with additional offices in the United States; Europe; Asia; Australia and Middle East
Blackstone Group Company Profile
The Blackstone Group L.P. is a publicly owned alternative asset manager. The firm also provides capital markets services to its clients. It provides its services to public and corporate pension funds, academic, cultural, and charitable organizations, retirees, sovereign wealth funds, and institutional and individual investors. The firm manages separate client focused portfolios for its clients. It also launches and manages private equity funds, real estate funds, funds of hedge funds, collateralized loan obligations, real estate investment trusts, and credit-focused funds for its clients. The firm invests in private equity, public equity, fixed income, and alternative investment markets across the globe. The Blackstone Group L.P. was founded in 1985 and is based in New York City, New York with additional offices in London, United Kingdom, Hong Kong, Baltimore, Maryland, Beijing, China, Copenhagen, Denmark, Dusseldorf, Germany, Los Angeles, California, Paris, France, San Francisco, California, Sao Paulo, Brazil, Singapore, Sydney, Australia, and Tokyo, Japan.
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