Head to Head Survey: SEI Investments (NASDAQ:SEIC) & TPG (NASDAQ:TPG)

TPG (NASDAQ:TPG) and SEI Investments (NASDAQ:SEIC) are both large-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Insider & Institutional Ownership

94.0% of TPG shares are owned by institutional investors. Comparatively, 70.6% of SEI Investments shares are owned by institutional investors. 61.4% of TPG shares are owned by company insiders. Comparatively, 4.8% of SEI Investments shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares TPG and SEI Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG	5.32%	29.05%	8.15%
SEI Investments	28.06%	30.14%	22.75%

Volatility & Risk

TPG has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, SEI Investments has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Dividends

TPG pays an annual dividend of $2.20 per share and has a dividend yield of 4.6%. SEI Investments pays an annual dividend of $1.04 per share and has a dividend yield of 0.9%. TPG pays out 252.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SEI Investments pays out 18.1% of its earnings in the form of a dividend. SEI Investments has raised its dividend for 34 consecutive years.

Analyst Ratings

This is a summary of current recommendations for TPG and SEI Investments, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG	0	4	11	0	2.73
SEI Investments	0	1	7	1	3.00

TPG presently has a consensus target price of $61.00, suggesting a potential upside of 27.25%. SEI Investments has a consensus target price of $125.50, suggesting a potential upside of 14.63%. Given TPG’s higher probable upside, equities research analysts clearly believe TPG is more favorable than SEI Investments.

Valuation & Earnings

This table compares TPG and SEI Investments”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG	$4.67 billion	3.94	$184.59 million	$0.87	55.10
SEI Investments	$2.30 billion	5.65	$715.30 million	$5.75	19.04

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

Summary

SEI Investments beats TPG on 10 of the 18 factors compared between the two stocks.

About TPG

TPG Inc. is a global alternative asset management firm that invests across private equity, growth equity, impact investing, real estate, credit and other investment strategies. The company manages investment funds and related products for institutional and individual investors. Founded in 1992 as Texas Pacific Group, TPG has expanded its investment platforms over time, including through its acquisition of Angelo Gordon, which added to its credit and real estate capabilities. The firm invests in businesses and assets across multiple industries and geographies, with operations and investment teams serving markets around the world.

About SEI Investments

SEI Investments Company is a financial technology and investment services firm founded in 1968 by Alfred P. West Jr. The company provides technology, investment management and operational services to financial institutions and investors. Its offerings include investment processing and administration, outsourced investment management, and technology platforms that support wealth managers, asset managers, financial institutions and institutional investors. SEI also provides investment solutions through its own asset management business.