PJT Partners (NYSE: PJT) and TD Ameritrade Holding Corporation (NASDAQ:AMTD) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Insider & Institutional Ownership

59.2% of PJT Partners shares are held by institutional investors. Comparatively, 93.6% of TD Ameritrade Holding Corporation shares are held by institutional investors. 3.3% of PJT Partners shares are held by insiders. Comparatively, 0.4% of TD Ameritrade Holding Corporation shares are held by 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.

Volatility & Risk

PJT Partners has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, TD Ameritrade Holding Corporation has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.

Earnings & Valuation

This table compares PJT Partners and TD Ameritrade Holding Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PJT Partners $524.92 million 1.35 -$1.85 million ($0.10) -381.30
TD Ameritrade Holding Corporation $3.46 billion 6.52 $845.04 million $1.60 26.71

TD Ameritrade Holding Corporation has higher revenue and earnings than PJT Partners. PJT Partners is trading at a lower price-to-earnings ratio than TD Ameritrade Holding Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. TD Ameritrade Holding Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. PJT Partners pays out -200.0% of its earnings in the form of a dividend. TD Ameritrade Holding Corporation pays out 45.0% 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for PJT Partners and TD Ameritrade Holding Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PJT Partners 0 0 1 0 3.00
TD Ameritrade Holding Corporation 0 6 9 0 2.60

PJT Partners presently has a consensus target price of $45.00, indicating a potential upside of 18.02%. TD Ameritrade Holding Corporation has a consensus target price of $44.75, indicating a potential upside of 4.73%. Given PJT Partners’ stronger consensus rating and higher possible upside, research analysts plainly believe PJT Partners is more favorable than TD Ameritrade Holding Corporation.

Profitability

This table compares PJT Partners and TD Ameritrade Holding Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PJT Partners -0.27% -115.47% 11.68%
TD Ameritrade Holding Corporation 24.01% 16.09% 2.89%

Summary

TD Ameritrade Holding Corporation beats PJT Partners on 11 of the 16 factors compared between the two stocks.

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.

About TD Ameritrade Holding Corporation

TD Ameritrade Holding Corporation is a provider of securities brokerage services and related technology-based financial services. The Company provides its services to retail investors, traders and independent registered investment advisors (RIAs). The Company provides its services through the Internet, a national branch network and relationships with RIAs. The Company’s products and services include common and preferred stock, exchange-traded funds, options, futures, foreign exchange, mutual funds, fixed income, new and secondary issue securities, margin lending, cash management services and annuities. The Company uses its platform to offer brokerage services to retail investors and investment advisors. In addition, it also offers various products and services to retail clients, such as touch-tone trading, trading over the Internet, real-time quotes, extended trading hours and direct access to market destinations.

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