Janus Henderson Group (NYSE:JHG – Get Free Report) and TPG (NASDAQ:TPG – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Analyst Ratings
This is a summary of current recommendations for Janus Henderson Group and TPG, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Janus Henderson Group | 0 | 5 | 5 | 0 | 2.50 |
TPG | 0 | 7 | 6 | 0 | 2.46 |
Janus Henderson Group currently has a consensus target price of $42.78, suggesting a potential upside of 16.85%. TPG has a consensus target price of $60.25, suggesting a potential upside of 20.67%. Given TPG’s higher possible upside, analysts plainly believe TPG is more favorable than Janus Henderson Group.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Janus Henderson Group | 15.56% | 12.13% | 8.15% |
TPG | 0.90% | 24.47% | 7.95% |
Dividends
Janus Henderson Group pays an annual dividend of $1.60 per share and has a dividend yield of 4.4%. TPG pays an annual dividend of $1.64 per share and has a dividend yield of 3.3%. Janus Henderson Group pays out 63.5% of its earnings in the form of a dividend. TPG pays out -497.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Janus Henderson Group has increased its dividend for 1 consecutive years. Janus Henderson Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Janus Henderson Group and TPG”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Janus Henderson Group | $2.47 billion | 2.33 | $408.90 million | $2.52 | 14.53 |
TPG | $3.50 billion | 5.27 | $23.48 million | ($0.33) | -151.30 |
Janus Henderson Group has higher earnings, but lower revenue than TPG. TPG is trading at a lower price-to-earnings ratio than Janus Henderson Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Janus Henderson Group has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, TPG has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.
Institutional & Insider Ownership
87.9% of Janus Henderson Group shares are owned by institutional investors. Comparatively, 94.0% of TPG shares are owned by institutional investors. 19.6% of Janus Henderson Group shares are owned by insiders. Comparatively, 70.0% of TPG shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
TPG beats Janus Henderson Group on 9 of the 17 factors compared between the two stocks.
About Janus Henderson Group
Janus Henderson Group plc is an asset management holding entity. Through its subsidiaries, the firm provides services to institutional, retail clients, and high net worth clients. It manages separate client-focused equity and fixed income portfolios. The firm also manages equity, fixed income, and balanced mutual funds for its clients. It invests in public equity and fixed income markets, as well as invests in real estate and private equity. Janus Henderson Group plc was founded in 1934 and is based in London, United Kingdom with additional offices in Jersey, United Kingdom and Sydney, Australia.
About TPG
TPG Inc. operates as an alternative asset manager in the United States and internationally. The company offers investment management services to TPG Funds, limited partners, and other vehicles. It also offers monitoring services to portfolio companies; advisory, debt and equity arrangement, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. In addition, the company invests in private equity funds, real estate funds, hedge funds, and credit funds. TPG Inc. was founded in 1992 and is based in Fort Worth, Texas. The company operates as a subsidiary of TPG GP A, LLC.
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