Head to Head Analysis: TPG (NASDAQ:TPG) versus Sprott (NYSE:SII)

Sprott (NYSE:SII) and TPG (NASDAQ:TPG) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and target prices for Sprott and TPG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprott	0	1	2	0	2.67
TPG	0	5	11	0	2.69

Sprott currently has a consensus price target of $230.00, suggesting a potential upside of 121.09%. TPG has a consensus price target of $60.43, suggesting a potential upside of 43.33%. Given Sprott’s higher probable upside, equities analysts plainly believe Sprott is more favorable than TPG.

Insider and Institutional Ownership

28.3% of Sprott shares are held by institutional investors. Comparatively, 94.0% of TPG shares are held by institutional investors. 18.3% of Sprott shares are held by insiders. Comparatively, 61.4% of TPG shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Sprott pays an annual dividend of $1.60 per share and has a dividend yield of 1.5%. TPG pays an annual dividend of $2.36 per share and has a dividend yield of 5.6%. Sprott pays out 48.9% of its earnings in the form of a dividend. TPG pays out 1,072.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sprott has raised its dividend for 1 consecutive years.

Volatility and Risk

Sprott has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, TPG has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.

Profitability

This table compares Sprott and TPG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprott	21.99%	23.54%	17.48%
TPG	3.81%	28.13%	8.25%

Earnings & Valuation

This table compares Sprott and TPG”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprott	$285.08 million	9.39	$67.35 million	$3.27	31.81
TPG	$4.67 billion	3.47	$184.59 million	$0.22	191.64

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

Summary

TPG beats Sprott on 10 of the 17 factors compared between the two stocks.

About Sprott

Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.

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.