Analyzing Westwood Holdings Group (NYSE:WHG) & Legg Mason (NYSE:LM)

Share on StockTwits

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.

Dividends

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.

Analyst Ratings

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 2 3 4 0 2.22

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.

Profitability

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%
Legg Mason -0.98% 7.30% 3.53%

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.

Summary

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.

Receive News & Ratings for Westwood Holdings Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Westwood Holdings Group and related companies with MarketBeat.com's FREE daily email newsletter.



Latest News

MKM Partners Lowers ADTRAN  Price Target to $17.00
MKM Partners Lowers ADTRAN Price Target to $17.00
Apple  PT Raised to $180.00 at Nomura
Apple PT Raised to $180.00 at Nomura
Advaxis  Lowered to “Hold” at ValuEngine
Advaxis Lowered to “Hold” at ValuEngine
Zacks Investment Research Upgrades Atlas Air Worldwide  to “Hold”
Zacks Investment Research Upgrades Atlas Air Worldwide to “Hold”
Apple  Raised to “Outperform” at Raymond James
Apple Raised to “Outperform” at Raymond James
Zacks Investment Research Lowers Agilysys  to Hold
Zacks Investment Research Lowers Agilysys to Hold


© 2006-2019 Ticker Report