Diamond Hill Investment Group (NASDAQ: DHIL) and Oaktree Capital Group (NYSE:OAK) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Valuation & Earnings
This table compares Diamond Hill Investment Group and Oaktree Capital Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Diamond Hill Investment Group||$145.20 million||5.00||$46.05 million||$14.47||14.37|
|Oaktree Capital Group||$1.47 billion||4.48||$231.49 million||$4.13||10.19|
This table compares Diamond Hill Investment Group and Oaktree Capital Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Diamond Hill Investment Group||34.43%||29.26%||21.55%|
|Oaktree Capital Group||15.75%||18.06%||4.27%|
Oaktree Capital Group pays an annual dividend of $3.04 per share and has a dividend yield of 7.2%. Diamond Hill Investment Group does not pay a dividend. Oaktree Capital Group pays out 73.6% of its earnings in the form of a dividend. Diamond Hill Investment Group has increased its dividend for 2 consecutive years.
This is a summary of recent ratings for Diamond Hill Investment Group and Oaktree Capital Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diamond Hill Investment Group||0||0||0||0||N/A|
|Oaktree Capital Group||0||4||1||0||2.20|
Oaktree Capital Group has a consensus target price of $49.80, suggesting a potential upside of 18.29%. Given Oaktree Capital Group’s higher probable upside, analysts plainly believe Oaktree Capital Group is more favorable than Diamond Hill Investment Group.
Volatility and Risk
Diamond Hill Investment Group has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Oaktree Capital Group has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.
Institutional & Insider Ownership
62.3% of Diamond Hill Investment Group shares are owned by institutional investors. Comparatively, 22.4% of Oaktree Capital Group shares are owned by institutional investors. 7.3% of Diamond Hill Investment Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Diamond Hill Investment Group beats Oaktree Capital Group on 11 of the 16 factors compared between the two stocks.
Diamond Hill Investment Group Company Profile
Diamond Hill Investment Group, Inc. provides investment advisory and fund administration services. The Company’s subsidiaries include Diamond Hill Capital Management, Inc. (DHCM), Beacon Hill Fund Services, Inc. (BHFS) and BHIL Distributors, Inc. (BHIL). The Company’s primary objective is to fulfill its fiduciary duty to clients. The Company provides investment management and administration services to mutual funds, institutional accounts and private investment funds. DHCM is an investment advisor to the Diamond Hill Funds (the Funds), a series of open-end mutual funds, private investment funds (Private Funds), an exchange traded fund and other institutional accounts. In addition, DHCM is administrator for the Funds. BHFS provides compliance, treasury and other fund administration services to investment advisors and mutual funds. BHIL is a subsidiary of BHFS. BHIL provides underwriting services to mutual funds. BHFS and BHIL collectively operate as Beacon Hill.
Oaktree Capital Group Company Profile
Oaktree Capital Group, LLC (Oaktree) is an investment manager specializing in alternative investments. The Company operates through investment management segment, which consists of the investment management services that the Company provides to its clients. The Company manages investments in a range of strategies within approximately six asset classes, which include corporate debt, convertible securities, distressed debt, control investing, real estate and listed equities. The Funds managed by Oaktree include commingled funds, separate accounts and collateralized loan obligation vehicles (CLOs). The commingled funds include open-end and closed-end limited partnerships in which it makes an investment and for which it serves as the general partner. CLOs are structured finance vehicles in which the Company typically makes an investment and for which it serves as collateral manager. Its clientele includes the United States pension plans and corporations and/or their pension funds.
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