Moelis & (NYSE: MC) and Greenhill & Co. (NYSE:GHL) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Earnings and Valuation

This table compares Moelis & and Greenhill & Co.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Moelis & $700.69 million 1.69 $55.13 million $2.00 21.53
Greenhill & Co. $299.08 million 1.65 $39.42 million $1.33 12.48

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

Profitability

This table compares Moelis & and Greenhill & Co.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Moelis & 8.50% 52.98% 24.68%
Greenhill & Co. 13.98% 15.68% 10.43%

Volatility & Risk

Moelis & has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, Greenhill & Co. has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Insider & Institutional Ownership

90.8% of Moelis & shares are owned by institutional investors. Comparatively, 97.1% of Greenhill & Co. shares are owned by institutional investors. 52.6% of Moelis & shares are owned by company insiders. Comparatively, 8.3% of Greenhill & Co. shares are owned by company 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.

Dividends

Moelis & pays an annual dividend of $1.48 per share and has a dividend yield of 3.4%. Greenhill & Co. pays an annual dividend of $1.80 per share and has a dividend yield of 10.8%. Moelis & pays out 74.0% of its earnings in the form of a dividend. Greenhill & Co. pays out 135.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Greenhill & Co. has raised its dividend for 2 consecutive years. Greenhill & Co. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings for Moelis & and Greenhill & Co., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moelis & 0 3 4 0 2.57
Greenhill & Co. 5 2 0 0 1.29

Moelis & currently has a consensus price target of $37.57, suggesting a potential downside of 12.73%. Greenhill & Co. has a consensus price target of $19.71, suggesting a potential upside of 18.76%. Given Greenhill & Co.’s higher probable upside, analysts plainly believe Greenhill & Co. is more favorable than Moelis &.

Summary

Moelis & beats Greenhill & Co. on 12 of the 17 factors compared between the two stocks.

About Moelis &

Moelis & Company is an investment banking advisory company. The Company provides strategic and financial advice to a client base, including corporations, governments and financial sponsors. The Company offers financial advisory services across various industry sectors. It advices its clients on decisions, including mergers and acquisitions (M&A), recapitalizations and restructurings, and other corporate finance matters. With 17 offices located in North and South America, Europe, the Middle East, Asia and Australia, the Company provided information flow and cross-border solutions as of December 31, 2016. The Company offers advisory services in all industries, including consumer, retail and restaurants; energy, power and infrastructure; financial institutions; financial sponsors; general industrials; healthcare; real estate, gaming, lodging and leisure, and technology, media and telecommunications. It advises clients on all aspects of public and private debt and equity transactions.

About Greenhill & Co.

Greenhill & Co., Inc. is an investment bank. The Company provides financial and strategic advice on domestic and cross-border mergers and acquisitions, divestitures, restructurings, financings, capital raising and other transactions to a diverse client base, including corporations, partnerships, institutions and governments globally. The Company also provides advice in connection with defense preparedness, activist response strategies and other mission critical situations. The Company acts for clients located across the world from its offices located in the United States, Australia, Brazil, Canada, Germany, Hong Kong, Japan, Sweden, and the United Kingdom. The Company’s subsidiaries provide advisory services in various jurisdictions. Its operating entities include Greenhill & Co., LLC (G&Co), Greenhill & Co. International LLP (GCI), Greenhill & Co. Europe LLP (GCE), Greenhill & Co. Australia Pty Limited (Greenhill Australia) and Greenhill Cogent, LP (GC LP).

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