Diamond Hill Investment Group (NASDAQ: DHIL) and Silvercrest Asset Management Group (NASDAQ:SAMG) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.
Institutional & Insider Ownership
60.0% of Diamond Hill Investment Group shares are owned by institutional investors. Comparatively, 46.5% of Silvercrest Asset Management Group shares are owned by institutional investors. 6.4% of Diamond Hill Investment Group shares are owned by company insiders. Comparatively, 9.6% of Silvercrest Asset Management Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Diamond Hill Investment Group and Silvercrest Asset Management 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%||29.19%||21.13%|
|Silvercrest Asset Management Group||5.84%||18.75%||12.33%|
Silvercrest Asset Management Group pays an annual dividend of $0.56 per share and has a dividend yield of 3.7%. Diamond Hill Investment Group does not pay a dividend. Silvercrest Asset Management Group pays out 84.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation and Earnings
This table compares Diamond Hill Investment Group and Silvercrest Asset Management Group’s 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||4.92||$49.98 million||$14.47||14.08|
|Silvercrest Asset Management Group||$91.36 million||2.17||$5.33 million||$0.66||22.73|
Diamond Hill Investment Group has higher revenue and earnings than Silvercrest Asset Management Group. Diamond Hill Investment Group is trading at a lower price-to-earnings ratio than Silvercrest Asset Management Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Diamond Hill Investment Group and Silvercrest Asset Management Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diamond Hill Investment Group||0||0||0||0||N/A|
|Silvercrest Asset Management Group||0||0||1||0||3.00|
Silvercrest Asset Management Group has a consensus target price of $17.00, suggesting a potential upside of 13.33%. Given Silvercrest Asset Management Group’s higher probable upside, analysts plainly believe Silvercrest Asset Management Group is more favorable than Diamond Hill Investment Group.
Risk & Volatility
Diamond Hill Investment Group has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Silvercrest Asset Management Group has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.
Diamond Hill Investment Group beats Silvercrest Asset Management Group on 9 of the 15 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.
Silvercrest Asset Management Group Company Profile
Silvercrest Asset Management Group Inc. (Silvercrest) is a full-service wealth management firm focused on providing financial advisory and related family office services to ultra-high net worth individuals and institutional investors. The Company offers a suite of family office services for families seeking oversight of financial affairs. It advises clients on traditional investment strategies focused on equities, fixed income and cash, as well as non-traditional investment strategies, including hedge funds, private equity funds, real estate and commodities. It offers clients an array of investment solutions together with an array of non-proprietary solutions offered by unaffiliated firms selected. Silvercrest’s family office services include financial planning; tax planning and preparation; partnership accounting and fund administration; consolidated wealth reporting; estate or trust agency, and art consultancy and management.
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