Westwood Holdings Group (NYSE:WHG) and Legg Mason (NYSE:LM) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.
Westwood Holdings Group pays an annual dividend of $2.88 per share and has a dividend yield of 10.0%. Legg Mason pays an annual dividend of $1.36 per share and has a dividend yield of 3.7%. Legg Mason pays out 44.7% of its earnings in the form of a dividend. Westwood Holdings Group has raised its dividend for 8 consecutive years and Legg Mason has raised its dividend for 9 consecutive years.
This is a summary of recent recommendations for Westwood Holdings Group and Legg Mason, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Westwood Holdings Group||0||0||0||0||N/A|
Legg Mason has a consensus price target of $32.38, indicating a potential downside of 10.74%. Given Legg Mason’s higher probable upside, analysts clearly believe Legg Mason is more favorable than Westwood Holdings Group.
Insider & Institutional Ownership
67.2% of Westwood Holdings Group shares are owned by institutional investors. Comparatively, 84.4% of Legg Mason shares are owned by institutional investors. 9.7% of Westwood Holdings Group shares are owned by insiders. Comparatively, 4.3% of Legg Mason shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Westwood Holdings Group and Legg Mason’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Westwood Holdings Group||17.02%||13.10%||11.26%|
Risk and Volatility
Westwood Holdings Group has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Legg Mason has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.
Earnings & Valuation
This table compares Westwood Holdings Group and Legg Mason’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Westwood Holdings Group||$122.30 million||2.12||$26.75 million||N/A||N/A|
|Legg Mason||$2.90 billion||1.08||-$28.51 million||$3.04||11.93|
Westwood Holdings Group has higher earnings, but lower revenue than Legg Mason.
Westwood Holdings Group beats Legg Mason on 8 of the 15 factors compared between the two stocks.
About Westwood Holdings Group
Westwood Holdings Group, Inc., through its subsidiaries, manages investment assets and provides services for its clients. The company operates in two segments, Advisory and Trust. The Advisory segment provides investment advisory services to corporate retirement plans, public retirement plans, endowments, foundations, individuals, and the Westwood Funds; and investment sub-advisory services to mutual funds, pooled investment vehicles, and its Trust segment. The Trust segment offers trust and custodial services; and participates in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Holdings Group, Inc. was founded in 1983 and is based in Dallas, Texas.
About Legg Mason
Legg Mason, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides investment management and related services to company-sponsored mutual funds and other investment vehicles including pension funds, foundations, endowments, sovereign wealth funds, insurance companies, private banks, family offices, individuals, as well as to global, institutional, and retail clients. It launches and manages equity, fixed income, and multi-asset customized portfolios through its subsidiaries. The firm also launches and manages mutual funds and exchange traded funds for its clients through its subsidiaries. It invests in private and public equity, fixed income, and multi asset markets across the globe through its subsidiaries. Through its subsidiaries, the firm also invests in alternative markets. It also employs a combination of fundamental and quantitative research to make its investments through its subsidiaries. Legg Mason, Inc. was founded in 1899 and is based in Baltimore, Maryland.
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