Reviewing Lazard (LAZ) and PJT Partners (NYSE:PJT)
Lazard (NYSE: LAZ) and PJT Partners (NYSE:PJT) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitabiliy.
This is a breakdown of current ratings and price targets for Lazard and PJT Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lazard currently has a consensus price target of $46.29, suggesting a potential upside of 1.73%. PJT Partners has a consensus price target of $45.00, suggesting a potential upside of 10.62%. Given PJT Partners’ stronger consensus rating and higher possible upside, analysts plainly believe PJT Partners is more favorable than Lazard.
Volatility and Risk
Lazard has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500. Comparatively, PJT Partners has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.
Valuation and Earnings
This table compares Lazard and PJT Partners’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lazard||$2.64 billion||2.24||$458.07 million||$3.53||12.89|
|PJT Partners||$524.92 million||1.44||-$1.85 million||($0.10)||-406.80|
Lazard has higher revenue and earnings than PJT Partners. PJT Partners is trading at a lower price-to-earnings ratio than Lazard, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
73.7% of Lazard shares are owned by institutional investors. Comparatively, 58.0% of PJT Partners shares are owned by institutional investors. 2.5% of Lazard shares are owned by insiders. Comparatively, 3.3% of PJT Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Lazard pays an annual dividend of $1.64 per share and has a dividend yield of 3.6%. PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Lazard pays out 46.5% of its earnings in the form of a dividend. PJT Partners pays out -200.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PJT Partners has increased its dividend for 6 consecutive years.
This table compares Lazard and PJT Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Lazard beats PJT Partners on 10 of the 17 factors compared between the two stocks.
Lazard Company Profile
Lazard Ltd (Lazard) is a financial advisory and asset management company. The Company operates through two segments: Financial Advisory and Asset Management. It serves a range of clients around the world, including corporations, governments, institutions, partnerships and individuals. The Financial Advisory business segment offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a range of financial advisory services regarding mergers and acquisitions (M&A) and other strategic matters, restructurings, capital structure, capital raising and various other financial matters to corporate, partnership, institutional, government, sovereign and individual clients. The Asset Management business provides investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds and sovereign entities.
PJT Partners Company Profile
PJT Partners Inc. is an advisory-focused investment bank. The Company offers an array of strategic advisory, restructuring and special situations and private fund advisory and placement services to corporations, financial sponsors, institutional investors and governments. It provides, through Park Hill Group, private fund advisory and placement services for alternative investment managers, including private equity funds, real estate funds and hedge funds. Its advisory business offers a range of financial advisory and transaction execution capability, including mergers and acquisitions, joint ventures, minority investments, asset swaps, divestitures, takeover defenses, corporate finance advisory, private placements and distressed sales. Its Restructuring and Special Situations Group’s services include advising companies, creditors and financial sponsors on recapitalizations, reorganizations, exchange offers, debt repurchases, capital raises, and distressed mergers and acquisitions.
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