PJT Partners (NYSE:PJT – Get Rating) and ArrowMark Financial (NASDAQ:BANX – Get Rating) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
PJT Partners pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. ArrowMark Financial pays an annual dividend of $1.56 per share and has a dividend yield of 8.5%. PJT Partners pays out 25.8% of its earnings in the form of a dividend. ArrowMark Financial pays out 294.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PJT Partners has raised its dividend for 1 consecutive years and ArrowMark Financial has raised its dividend for 1 consecutive years.
Valuation and Earnings
This table compares PJT Partners and ArrowMark Financial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PJT Partners||$991.95 million||1.89||$189.96 million||$3.88||19.81|
|ArrowMark Financial||$17.36 million||7.51||$12.63 million||$0.53||34.66|
This table compares PJT Partners and ArrowMark Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for PJT Partners and ArrowMark Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PJT Partners currently has a consensus target price of $84.40, indicating a potential upside of 9.78%. Given PJT Partners’ higher probable upside, equities research analysts clearly believe PJT Partners is more favorable than ArrowMark Financial.
Insider and Institutional Ownership
70.3% of PJT Partners shares are held by institutional investors. Comparatively, 24.8% of ArrowMark Financial shares are held by institutional investors. 3.3% of PJT Partners shares are held by company insiders. Comparatively, 0.5% of ArrowMark Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
PJT Partners has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, ArrowMark Financial has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.
PJT Partners beats ArrowMark Financial on 11 of the 15 factors compared between the two stocks.
About PJT Partners
PJT Partners Inc., an investment bank, provides various strategic and capital markets advisory, restructuring and special situations, and shareholder advisory services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers advisory services to clients on various transactions, including mergers and acquisitions (M&A), spin-offs, activism defense, contested M&A, joint ventures, minority investments, and divestitures. The company also advises private and public company boards and management teams on strategies for building productive investor relationships with a focus on shareholder engagement; and strategic investor relations; environmental, social, and governance matters; and other investor-related matters. In addition, it provides advisory services related to debt and acquisition financings; structured product offerings; public equity raises, including initial public offering and SPAC offerings; and private capital raises for early and later stage companies, as well as other capital structure related matters. Further, the company offers advisory services in restructurings and recapitalizations; and serving a range of companies, creditors, and financial sponsors on liability management and related capital raise transactions, including exchanges, recapitalizations, reorganizations, debt repurchases, and distressed mergers and acquisitions. Additionally, it provides private fund advisory and fundraising services for a range of investment strategies; and advisory services to GPs and LPs on liquidity and other structured solutions in the secondary market. The company was formerly known as Blackstone Advisory Inc. and changed its name to PJT Partners Inc. in March 2015. PJT Partners Inc. was incorporated in 2014 and is headquartered in New York, New York.
About ArrowMark Financial
ArrowMark Financial Corp. is a closed-end balanced mutual fund launched and managed by ArrowMark Asset Management, LLC. It invests in public equity and fixed income markets of global region. For its equity portion, the fund invests in stocks of companies operating across financials, banks sectors. It invests in growth and value stocks of companies across diversified market capitalization. For its fixed income portion, the fund invests in debt and subordinated debt, structured notes and securities, regulatory capital securities which are rated below investment grade. ArrowMark Financial Corp. was formed on February 7, 2013 and is domiciled in the United States.
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