Financial Analysis: Perella Weinberg Partners (NASDAQ:PWP) and Futu (NASDAQ:FUTU)

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

Analyst Recommendations

This is a breakdown of current ratings for Perella Weinberg Partners and Futu, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perella Weinberg Partners	1	1	2	0	2.25
Futu	0	4	2	0	2.33

Perella Weinberg Partners currently has a consensus target price of $22.00, indicating a potential upside of 39.06%. Futu has a consensus target price of $139.91, indicating a potential upside of 36.94%. Given Perella Weinberg Partners’ higher possible upside, equities analysts clearly believe Perella Weinberg Partners is more favorable than Futu.

Dividends

Perella Weinberg Partners pays an annual dividend of $0.28 per share and has a dividend yield of 1.8%. Futu pays an annual dividend of $2.55 per share and has a dividend yield of 2.5%. 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. Futu pays out 25.2% of its earnings in the form of a dividend. Futu is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Perella Weinberg Partners and Futu”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	1.98	$35.48 million	$0.26	60.85
Futu	$25.90 billion	0.55	$1.46 billion	$10.10	10.12

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

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, Futu has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Profitability

This table compares Perella Weinberg Partners and Futu’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%
Futu	42.95%	28.20%	4.40%

Insider and Institutional Ownership

41.1% of Perella Weinberg Partners shares are owned by institutional investors. 26.1% of Perella Weinberg Partners shares are owned by insiders. Comparatively, 35.2% of Futu shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Futu beats Perella Weinberg Partners on 9 of the 15 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 Futu

Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin financing and fund distribution services through its Futubull and Moomoo digital platforms. The company also provides financial information and online community services; online wealth management services under the Money Plus brand name through its Futubull and moomoo platforms, which provides its client access to mutual funds, private funds, bonds, structured products, and other wealth management products; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas. Futu Holdings Limited was founded in 2007 and is headquartered in Sheung Wan, Hong Kong.