Janus Capital Group (NYSE: JNS) and Garrison Capital (NASDAQ:GARS) are both financials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

This table compares Janus Capital Group and Garrison Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Janus Capital Group 12.54% 7.26% 4.48%
Garrison Capital -0.38% 8.33% 3.97%

Dividends

Janus Capital Group pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. Garrison Capital pays an annual dividend of $1.12 per share and has a dividend yield of 13.1%. Janus Capital Group pays out 55.7% of its earnings in the form of a dividend. Garrison Capital has increased its dividend for 6 consecutive years. Garrison Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Janus Capital Group has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Garrison Capital has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Janus Capital Group and Garrison Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Janus Capital Group 1 6 0 0 1.86
Garrison Capital 0 5 1 0 2.17

Janus Capital Group presently has a consensus price target of $14.20, indicating a potential upside of 0.21%. Garrison Capital has a consensus price target of $10.17, indicating a potential upside of 19.19%. Given Garrison Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Garrison Capital is more favorable than Janus Capital Group.

Earnings & Valuation

This table compares Janus Capital Group and Garrison Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Janus Capital Group N/A N/A N/A $0.79 17.94
Garrison Capital N/A N/A N/A N/A N/A

Institutional and Insider Ownership

90.2% of Janus Capital Group shares are held by institutional investors. Comparatively, 22.6% of Garrison Capital shares are held by institutional investors. 2.1% of Janus Capital Group shares are held by company insiders. Comparatively, 5.8% of Garrison Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Garrison Capital beats Janus Capital Group on 8 of the 12 factors compared between the two stocks.

About Janus Capital Group

Janus Capital Group Inc. provides investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, separate accounts, other pooled investment vehicles, exchange-traded products (ETPs) and subadvised relationships (collectively referred to as investment products) in both domestic and international markets. The Company operates through investment management business segment. The Company provides investment management solutions across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives. As of December 31, 2016, the Company’s investment products were distributed through three primary channels: intermediary, institutional and self-directed. Each distribution channel focuses on specific investor groups and the requirements of each group.

About Garrison Capital

Garrison Capital Inc. is a managed, closed-end, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation by making investments primarily in debt securities and loans of the United States-based middle-market companies, which it defines as those having annual earnings before interest, taxes and depreciation, or EBITDA, of certain amount. It invests or provides direct lending in first lien senior secured loans, second lien senior secured loans, one-stop senior secured loans or unitranche loans, subordinated or mezzanine loans, unsecured consumer loans and to a lesser extent, selected equity co-investments in middle-market companies. The Company intends to generate risk-adjusted net returns by assembling a portfolio of investments. The Company’s investment advisor is Garrison Capital Advisers LLC.

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