FBR & Co (NASDAQ: FBRC) and PJT Partners (NYSE:PJT) are both financials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Volatility & Risk

FBR & Co has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, PJT Partners has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.

Profitability

This table compares FBR & Co and PJT Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FBR & Co 3.49% 4.34% 0.49%
PJT Partners -0.27% -115.47% 11.68%

Earnings & Valuation

This table compares FBR & Co and PJT Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FBR & Co N/A N/A N/A ($9.00) -1.95
PJT Partners $524.92 million 1.35 -$1.85 million ($0.10) -383.20

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

Analyst Ratings

This is a breakdown of recent recommendations for FBR & Co and PJT Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FBR & Co 0 1 0 0 2.00
PJT Partners 0 0 1 0 3.00

PJT Partners has a consensus target price of $45.00, indicating a potential upside of 17.43%. Given PJT Partners’ stronger consensus rating and higher possible upside, analysts plainly believe PJT Partners is more favorable than FBR & Co.

Institutional and Insider Ownership

72.4% of FBR & Co shares are held by institutional investors. Comparatively, 59.2% of PJT Partners shares are held by institutional investors. 13.9% of FBR & Co shares are held by insiders. Comparatively, 3.3% of PJT Partners 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.

Dividends

FBR & Co pays an annual dividend of $0.80 per share and has a dividend yield of 4.6%. PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. FBR & Co pays out -8.9% of its earnings in the form of a dividend. PJT Partners pays out -200.0% 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.

Summary

PJT Partners beats FBR & Co on 7 of the 13 factors compared between the two stocks.

About FBR & Co

FBR & Co. is an investment banking and institutional brokerage company. The Company focuses on the equity capital markets. The Company operates through two segments: capital markets, which includes investment banking, institutional brokerage and research, and principal investing. Through its broker-dealer operating subsidiaries, the Company focuses its business on providing: capital raising services, including underwriting and placement of public and private equity, equity-linked and debt securities; financial advisory services, including merger and acquisition (M&A) advisory, restructuring, liability management, recapitalization and strategic alternative analysis; institutional sales and trading services focused on equities, equity-linked securities, listed options, high-yield bonds, senior debt and bank loans, as well as securities lending activities, and differentiated securities research.

About PJT Partners

PJT Partners Inc. is an advisory-focused investment bank. The Company offers an array of strategic advisory, restructuring and special situations and private fund advisory and placement services to corporations, financial sponsors, institutional investors and governments. It provides, through Park Hill Group, private fund advisory and placement services for alternative investment managers, including private equity funds, real estate funds and hedge funds. Its advisory business 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. Its Restructuring and Special Situations Group’s services include advising companies, creditors and financial sponsors on recapitalizations, reorganizations, exchange offers, debt repurchases, capital raises, and distressed mergers and acquisitions.

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