U.S. Global Investors (NASDAQ:GROW) and Artisan Partners Asset Management (NYSE:APAM) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings for U.S. Global Investors and Artisan Partners Asset Management, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Global Investors 0 0 0 0 N/A
Artisan Partners Asset Management 1 2 1 0 2.00

Artisan Partners Asset Management has a consensus target price of $32.25, suggesting a potential upside of 45.40%. Given Artisan Partners Asset Management’s higher possible upside, analysts clearly believe Artisan Partners Asset Management is more favorable than U.S. Global Investors.

Volatility & Risk

U.S. Global Investors has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Artisan Partners Asset Management has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Profitability

This table compares U.S. Global Investors and Artisan Partners Asset Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
U.S. Global Investors -29.56% -5.84% -5.26%
Artisan Partners Asset Management 11.60% 199.82% 25.27%

Dividends

U.S. Global Investors pays an annual dividend of $0.03 per share and has a dividend yield of 2.4%. Artisan Partners Asset Management pays an annual dividend of $2.40 per share and has a dividend yield of 10.8%. Artisan Partners Asset Management pays out 99.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares U.S. Global Investors and Artisan Partners Asset Management’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
U.S. Global Investors $6.26 million 3.05 $640,000.00 N/A N/A
Artisan Partners Asset Management $795.60 million 2.14 $49.59 million $2.41 9.20

Artisan Partners Asset Management has higher revenue and earnings than U.S. Global Investors.

Institutional & Insider Ownership

23.3% of U.S. Global Investors shares are held by institutional investors. Comparatively, 62.6% of Artisan Partners Asset Management shares are held by institutional investors. 28.2% of Artisan Partners Asset Management shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Artisan Partners Asset Management beats U.S. Global Investors on 11 of the 13 factors compared between the two stocks.

U.S. Global Investors Company Profile

U.S. Global Investors, Inc. is a publicly owned investment manager. The firm primarily provides its services to investment companies. It also provides its services to pooled investment vehicles. The firm manages equity and fixed income mutual funds for its clients. It also manages hedge funds. The firm also manages exchange traded funds. It invests in the public equity and fixed income markets across the globe. It invests in G.A.R.P. and value stocks to make its equity investments. The firm employs a fundamental and quantitative analysis with top-down and bottom-up stock picking approach to make its investments. U.S. Global Investors, Inc. was founded in 1968 and is based in San Antonio, Texas.

Artisan Partners Asset Management Company Profile

Artisan Partners Asset Management Inc. is publicly owned investment manager. It provides its services to pension and profit sharing plans, trusts, endowments, foundations, charitable organizations, government entities, private funds and non-U.S. funds, as well as mutual funds, non-U.S. funds and collective trusts. It manages separate client-focused equity and fixed income portfolios. The firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of companies across all market capitalization. For fixed income component of its portfolio the firm invests in non-investment grade corporate bonds and secured and unsecured loans. It employs fundamental analysis to create its portfolios. Artisan Partners Asset Management Inc. was founded in 1994 and is based in Milwaukee, Wisconsin with additional offices in Atlanta, Georgia; New York City; San Francisco, California; Leawood, Kansas; and London, United Kingdom.

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