Critical Analysis: The Blackstone Group L.P. (BX) versus Eaton Vance Corporation (EV)
The Blackstone Group L.P. (NYSE: BX) and Eaton Vance Corporation (NYSE:EV) are both mid-cap financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
This table compares The Blackstone Group L.P. and Eaton Vance Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Blackstone Group L.P.||22.88%||19.71%||8.71%|
|Eaton Vance Corporation||18.03%||34.47%||13.99%|
This is a breakdown of current ratings for The Blackstone Group L.P. and Eaton Vance Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Blackstone Group L.P.||0||1||8||0||2.89|
|Eaton Vance Corporation||0||5||2||0||2.29|
The Blackstone Group L.P. presently has a consensus target price of $38.56, indicating a potential upside of 20.07%. Eaton Vance Corporation has a consensus target price of $51.36, indicating a potential downside of 1.75%. Given The Blackstone Group L.P.’s stronger consensus rating and higher probable upside, equities analysts clearly believe The Blackstone Group L.P. is more favorable than Eaton Vance Corporation.
Earnings & Valuation
This table compares The Blackstone Group L.P. and Eaton Vance Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|The Blackstone Group L.P.||$5.13 billion||3.95||$1.04 billion||$2.32||13.84|
|Eaton Vance Corporation||$1.34 billion||4.52||$241.30 million||$2.30||22.73|
The Blackstone Group L.P. has higher revenue and earnings than Eaton Vance Corporation. The Blackstone Group L.P. is trading at a lower price-to-earnings ratio than Eaton Vance Corporation, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
46.6% of The Blackstone Group L.P. shares are owned by institutional investors. Comparatively, 69.5% of Eaton Vance Corporation shares are owned by institutional investors. 1.0% of The Blackstone Group L.P. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk
The Blackstone Group L.P. has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Eaton Vance Corporation has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.
The Blackstone Group L.P. pays an annual dividend of $1.76 per share and has a dividend yield of 5.5%. Eaton Vance Corporation pays an annual dividend of $1.24 per share and has a dividend yield of 2.4%. The Blackstone Group L.P. pays out 75.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eaton Vance Corporation pays out 53.9% of its earnings in the form of a dividend. The Blackstone Group L.P. has raised its dividend for 36 consecutive years and Eaton Vance Corporation has raised its dividend for 4 consecutive years. The Blackstone Group L.P. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
The Blackstone Group L.P. beats Eaton Vance Corporation on 10 of the 17 factors compared between the two stocks.
About The Blackstone Group L.P.
The Blackstone Group L.P. is a global alternative asset manager. The Company’s alternative asset management businesses include investment vehicles focused on private equity, non-investment grade credit, secondary private equity funds of funds and multi-asset class strategies. It operates through four segments: Private Equity, Real Estate, Hedge Fund Solutions and Credit. The Private Equity segment includes its corporate private equity business, which consists of its corporate private equity funds, Blackstone Capital Partners (BCP) funds, its sector-focused corporate private equity funds, including its energy-focused funds, Blackstone Energy Partners (BEP) funds and its core private equity fund. The Blackstone Real Estate Partners funds target a range of opportunistic real estate and real estate related investments. The Hedge Fund Solutions segment consists of Blackstone Alternative Asset Management (BAAM). The Credit segment consists principally of GSO Capital Partners LP (GSO).
About Eaton Vance Corporation
Eaton Vance Corp. is engaged in the business of managing investment funds and providing investment management and advisory services to high-net-worth individuals and institutions. The Company operates as an investment advisor to funds and separate accounts. The Company, through its subsidiaries and other affiliates, manages active equity, income and alternative strategies across a range of investment styles and asset classes, including the United States and global equities, floating-rate bank loans, municipal bonds, global income, high-yield and investment grade bonds. Through its subsidiary, the Company also manages a range of engineered alpha strategies, including systematic equity, systematic alternatives and managed options strategies. The Company’s open-end fund lineup includes tax-managed equity funds, and non-tax-managed equity and multi-asset funds. The Company’s family of closed-end funds includes municipal bond, domestic and global equity, and bank loan.
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