Critical Contrast: The Carlyle Group L.P. (CG) versus OM Asset Management PLC (OMAM)
The Carlyle Group L.P. (NASDAQ: CG) and OM Asset Management PLC (NYSE:OMAM) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.
This is a breakdown of current ratings for The Carlyle Group L.P. and OM Asset Management PLC, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Carlyle Group L.P.||0||4||5||0||2.56|
|OM Asset Management PLC||0||0||6||0||3.00|
The Carlyle Group L.P. presently has a consensus target price of $22.88, suggesting a potential upside of 9.98%. OM Asset Management PLC has a consensus target price of $17.88, suggesting a potential upside of 32.80%. Given OM Asset Management PLC’s stronger consensus rating and higher probable upside, analysts clearly believe OM Asset Management PLC is more favorable than The Carlyle Group L.P..
Institutional and Insider Ownership
40.6% of The Carlyle Group L.P. shares are owned by institutional investors. Comparatively, 66.0% of OM Asset Management PLC shares are owned by institutional investors. 1.5% of OM Asset Management PLC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
The Carlyle Group L.P. has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, OM Asset Management PLC has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500.
Valuation and Earnings
This table compares The Carlyle Group L.P. and OM Asset Management PLC’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|The Carlyle Group L.P.||$3.21 billion||0.59||$894.40 million||$1.31||15.88|
|OM Asset Management PLC||$772.40 million||1.91||$173.80 million||$0.79||17.04|
The Carlyle Group L.P. has higher revenue and earnings than OM Asset Management PLC. The Carlyle Group L.P. is trading at a lower price-to-earnings ratio than OM Asset Management PLC, indicating that it is currently the more affordable of the two stocks.
This table compares The Carlyle Group L.P. and OM Asset Management PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Carlyle Group L.P.||4.13%||41.32%||7.03%|
|OM Asset Management PLC||12.12%||95.51%||12.52%|
The Carlyle Group L.P. pays an annual dividend of $1.68 per share and has a dividend yield of 8.1%. OM Asset Management PLC pays an annual dividend of $0.36 per share and has a dividend yield of 2.7%. The Carlyle Group L.P. pays out 128.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. OM Asset Management PLC pays out 45.6% of its earnings in the form of a dividend.
OM Asset Management PLC beats The Carlyle Group L.P. on 10 of the 16 factors compared between the two stocks.
The Carlyle Group L.P. Company Profile
The Carlyle Group L.P. is a diversified multi-product global alternative asset management firm. The Company operates in four segments: Corporate Private Equity (CPE), Real Assets, Global Market Strategies (GMS) and Investment Solutions. Corporate Private Equity advises its buyout and growth capital funds, which pursue various corporate investments of different sizes and growth potentials. As of December 31, 2016, the Real Assets segment advised its 26 active carry funds focused on real estate, infrastructure and energy and natural resources (including power). As of December 31, 2016, the Global Market Strategies segment advised a group of 57 active funds that pursue investment strategies, including leveraged loans and structured credit, energy mezzanine opportunities, middle market lending and distressed debt. Its Investment Solutions segment provides investment opportunities and resources for its investors and clients.
OM Asset Management PLC Company Profile
OM Asset Management plc is a global, diversified, multi-boutique asset management company. As of December 31, 2016, the Company operated its business through its eight Affiliates, each of which operated autonomously and employed its own investment processes. Its Affiliates include Acadian Asset Management LLC; Barrow, Hanley, Mewhinney & Strauss, LLC; Campbell Global, LLC; Copper Rock Capital Partners LLC; Heitman LLC; Investment Counselors of Maryland, LLC; Landmark Partners, LLC, and Thompson, Siegel & Walmsley LLC. It works with boutique asset managers, and the Company leverages the resources within its organization to engage with its Affiliates and provide them with capabilities unavailable to specialist asset management firms. The Company works with its Affiliates to identify and execute upon opportunities for their businesses in areas, such as business line expansion and product development, as well as activities required for the operation of investment boutiques.
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