Reviewing Orchid Island Capital (NYSE:ORC) and Perella Weinberg Partners (NASDAQ:PWP)

Perella Weinberg Partners (NASDAQ:PWP) and Orchid Island Capital (NYSE:ORC) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Insider & Institutional Ownership

41.1% of Perella Weinberg Partners shares are held by institutional investors. Comparatively, 32.7% of Orchid Island Capital shares are held by institutional investors. 26.1% of Perella Weinberg Partners shares are held by company insiders. Comparatively, 0.3% of Orchid Island Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Perella Weinberg Partners and Orchid Island Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perella Weinberg Partners	3.19%	-35.84%	8.40%
Orchid Island Capital	N/A	11.87%	1.35%

Analyst Ratings

This is a summary of recent ratings and price targets for Perella Weinberg Partners and Orchid Island Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perella Weinberg Partners	1	1	2	0	2.25
Orchid Island Capital	1	2	0	0	1.67

Perella Weinberg Partners currently has a consensus target price of $22.00, indicating a potential upside of 73.78%. Orchid Island Capital has a consensus target price of $7.50, indicating a potential upside of 57.04%. Given Perella Weinberg Partners’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Perella Weinberg Partners is more favorable than Orchid Island Capital.

Volatility & Risk

Perella Weinberg Partners has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Orchid Island Capital has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Earnings and Valuation

This table compares Perella Weinberg Partners and Orchid Island Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perella Weinberg Partners	$750.90 million	1.59	$35.48 million	$0.26	48.69
Orchid Island Capital	$414.00 million	2.30	$159.03 million	$1.48	3.23

Orchid Island Capital has lower revenue, but higher earnings than Perella Weinberg Partners. Orchid Island Capital is trading at a lower price-to-earnings ratio than Perella Weinberg Partners, indicating that it is currently the more affordable of the two stocks.

Dividends

Perella Weinberg Partners pays an annual dividend of $0.28 per share and has a dividend yield of 2.2%. Orchid Island Capital pays an annual dividend of $1.20 per share and has a dividend yield of 25.1%. Perella Weinberg Partners pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Orchid Island Capital pays out 81.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Orchid Island Capital has increased its dividend for 1 consecutive years. Orchid Island Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Perella Weinberg Partners beats Orchid Island Capital on 10 of the 17 factors compared between the two stocks.

About Perella Weinberg Partners

Perella Weinberg Partners, an independent investment banking company, provides strategic and financial advice services in the United States and internationally. The company offers advisory services related to strategic and financial decisions, mergers and acquisition execution, shareholder and defense advisory, and financing and capital solutions advice with resources focused on restructuring, liability management, and capital markets advisory, as well as underwriting and research services primarily for the energy and related industries. It serves public multinational corporations, mid-sized public and private companies, financial sponsors, individual entrepreneurs, private and institutional investors, creditor committees, and government institutions in consumer and retail; energy and energy transition; financial services and FinTech; healthcare; industrials and infrastructure; and technology, telecommunication, and media industries. Perella Weinberg Partners is headquartered in New York, New York.

About Orchid Island Capital

Orchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The company’s RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS comprising interest only securities, inverse interest only securities, and principal only securities. The company has elected to be taxed as a real estate investment trust (REIT) for the United States federal income tax purposes. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to stockholders, if it annually distributes dividends equal to at least 90% of its REIT taxable income to its stockholders. Orchid Island Capital, Inc. was incorporated in 2010 and is headquartered in Vero Beach, Florida.