Och-Ziff Capital Management (NYSE: OZM) and Schroders (OTCMKTS:SHNWF) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Risk and Volatility
Och-Ziff Capital Management has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Schroders has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500.
17.2% of Och-Ziff Capital Management shares are owned by institutional investors. 60.3% of Och-Ziff Capital Management 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.
This table compares Och-Ziff Capital Management and Schroders’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Och-Ziff Capital Management||2.46%||-136.75%||18.39%|
Och-Ziff Capital Management pays an annual dividend of $0.28 per share and has a dividend yield of 12.3%. Schroders does not pay a dividend. Och-Ziff Capital Management pays out 54.9% of its earnings in the form of a dividend.
This is a breakdown of current ratings and price targets for Och-Ziff Capital Management and Schroders, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Och-Ziff Capital Management||0||2||1||0||2.33|
Och-Ziff Capital Management currently has a consensus target price of $3.75, suggesting a potential upside of 65.20%. Given Och-Ziff Capital Management’s stronger consensus rating and higher possible upside, analysts clearly believe Och-Ziff Capital Management is more favorable than Schroders.
Earnings & Valuation
This table compares Och-Ziff Capital Management and Schroders’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Och-Ziff Capital Management||$858.34 million||1.31||$21.07 million||$0.51||4.45|
|Schroders||$3.24 billion||3.14||$648.68 million||$2.87||15.66|
Schroders has higher revenue and earnings than Och-Ziff Capital Management. Och-Ziff Capital Management is trading at a lower price-to-earnings ratio than Schroders, indicating that it is currently the more affordable of the two stocks.
Och-Ziff Capital Management Company Profile
Och-Ziff Capital Management Group LLC is a publicly owned hedge fund sponsor. The firm provides investment advisory services for its clients. It primarily caters to institutional investors which include pension funds, fund-of-funds, foundations and endowments, corporations and other institutions, private banks and family offices. The firm invests in equity and alternative markets across the world. It employs quantitative and qualitative analysis to make its investments. For its multi-strategy portfolios, the firm employs strategies like convertible and derivative arbitrage, corporate credit, long/short equity special situations, buyout investments, merger arbitrage, private investments, and structured credit. It also invests in real estate and traditional real estate assets including multifamily, office, hotel and retail, loans, portfolio acquisitions, loan pools, operating companies, structured debt products, public securities, and non-traditional real estate assets including gaming, distressed land and residential, cell towers, parking, golf, debt and senior housing. For private equity investments, it considers investments in a variety of special situations that seek to realize value through strategic sales or initial public offerings. The firm typically invests in the energy investments. It prefers to invest in United States. It also manages a buyout fund, Och-Ziff Energy Fund. Och-Ziff Capital Management Group LLC was founded in 1994 and is based New York City with additional offices in Houston, Texas, London, United Kingdom, Hong Kong, Tokyo, Japan, Bangalore, India, Singapore, and Beijing, China.
Schroders Company Profile
Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. It launches and manages equity mutual funds and manages fixed income mutual funds for its clients. The firm also manages hedge for its clients. It invests in the public equity, fixed income, and alternative investment markets across the globe. The firm's alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds. It conducts an in-house research to make its investments. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.
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