OM Asset Management PLC (NYSE: OMAM) and Hamilton Lane (NASDAQ:HLNE) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Insider and Institutional Ownership

66.0% of OM Asset Management PLC shares are owned by institutional investors. Comparatively, 66.7% of Hamilton Lane shares are owned by institutional investors. 1.5% of OM Asset Management PLC shares are owned by company insiders. Comparatively, 62.9% of Hamilton Lane shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares OM Asset Management PLC and Hamilton Lane’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
OM Asset Management PLC $772.40 million 1.92 $173.80 million $0.79 17.11
Hamilton Lane $192.96 million 2.25 $87.34 million N/A N/A

OM Asset Management PLC has higher revenue and earnings than Hamilton Lane.

Dividends

OM Asset Management PLC pays an annual dividend of $0.36 per share and has a dividend yield of 2.7%. Hamilton Lane pays an annual dividend of $0.70 per share and has a dividend yield of 3.1%. OM Asset Management PLC pays out 45.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for OM Asset Management PLC and Hamilton Lane, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OM Asset Management PLC 0 0 6 0 3.00
Hamilton Lane 0 3 2 0 2.40

OM Asset Management PLC presently has a consensus target price of $17.88, suggesting a potential upside of 32.21%. Hamilton Lane has a consensus target price of $21.25, suggesting a potential downside of 5.76%. Given OM Asset Management PLC’s stronger consensus rating and higher probable upside, research analysts plainly believe OM Asset Management PLC is more favorable than Hamilton Lane.

Profitability

This table compares OM Asset Management PLC and Hamilton Lane’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OM Asset Management PLC 12.12% 95.51% 12.52%
Hamilton Lane N/A N/A N/A

Summary

OM Asset Management PLC beats Hamilton Lane on 8 of the 13 factors compared between the two stocks.

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.

Hamilton Lane Company Profile

Hamilton Lane Incorporated is a global private markets investment solutions provider. The Company works with its clients to conceive, structure, build out, manage and monitor portfolios of private markets funds and direct investments, and it helps them access a set of such investment opportunities around the world. It offers a range of investment solutions across a range of private markets, including private equity, private credit, real estate, infrastructure, natural resources, growth equity and venture capital. These solutions are constructed from a range of investment types, including primary investments in funds managed by third-party managers, direct/co-investments alongside such funds and acquisitions of secondary stakes in such funds, with a range of its clients utilizing multiple investment types. These solutions are offered in a range of formats covering some or all phases of private markets investment programs, such as Customized Separate Accounts and Specialized Funds.

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