Critical Analysis: Nomura (NYSE:NMR) versus Perella Weinberg Partners (NASDAQ:PWP)

Perella Weinberg Partners (NASDAQ:PWP) and Nomura (NYSE:NMR) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Valuation and Earnings

This table compares Perella Weinberg Partners and Nomura”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perella Weinberg Partners	$750.90 million	1.60	$35.48 million	$0.26	49.18
Nomura	$31.61 billion	0.95	$2.39 billion	$0.86	11.92

Nomura has higher revenue and earnings than Perella Weinberg Partners. Nomura 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.

Profitability

This table compares Perella Weinberg Partners and Nomura’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%
Nomura	8.09%	10.42%	0.63%

Dividends

Perella Weinberg Partners pays an annual dividend of $0.28 per share and has a dividend yield of 2.2%. Nomura pays an annual dividend of $0.24 per share and has a dividend yield of 2.3%. 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. Nomura pays out 27.9% of its earnings in the form of a dividend. Nomura is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings for Perella Weinberg Partners and Nomura, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perella Weinberg Partners	1	1	2	0	2.25
Nomura	0	1	3	1	3.00

Perella Weinberg Partners presently has a consensus price target of $22.00, suggesting a potential upside of 72.05%. Nomura has a consensus price target of $10.20, suggesting a potential downside of 0.54%. Given Perella Weinberg Partners’ higher possible upside, research analysts clearly believe Perella Weinberg Partners is more favorable than Nomura.

Institutional & Insider Ownership

41.1% of Perella Weinberg Partners shares are owned by institutional investors. Comparatively, 15.1% of Nomura shares are owned by institutional investors. 26.1% of Perella Weinberg Partners shares are owned by company insiders. Comparatively, 0.0% of Nomura shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Perella Weinberg Partners has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Nomura has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Summary

Nomura beats Perella Weinberg Partners 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 Nomura

Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. It operates through three segments: Retail, Investment Management, and Wholesale. The Retail segment offers various financial products and investment consultation services. The Investment Management segment engages in the management of funds, investment trusts, and other investment solutions; and provision of investment advisory, custodial, and administrative services. The Wholesale segment is involved in the research, sale, trading, agency execution, and market-making of fixed income and equity-related products. This segment also engages in underwriting various securities and other financial instruments, such as various classes of shares, convertible and exchangeable securities, investment grade and high yield debts, sovereign and emerging market debts, structured securities, and other securities; arranging private placements, as well as other capital raising activities; and the provision of financial advisory services on business transactions comprising mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions. The company was formerly known as The Nomura Securities Co., Ltd. and changed its name to Nomura Holdings, Inc. in October 2001. Nomura Holdings, Inc. was incorporated in 1925 and is headquartered in Tokyo, Japan.