TPG (NASDAQ:TPG) vs. Lazard (NYSE:LAZ) Head-To-Head Review

TPG (NASDAQ:TPG – Get Free Report) and Lazard (NYSE:LAZ – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Insider & Institutional Ownership

12.5% of TPG shares are owned by institutional investors. Comparatively, 55.7% of Lazard shares are owned by institutional investors. 78.7% of TPG shares are owned by insiders. Comparatively, 3.9% of Lazard 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.

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Profitability

This table compares TPG and Lazard’s net margins, return on equity and return on assets.

Dividends

TPG pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. Lazard pays an annual dividend of $2.00 per share and has a dividend yield of 6.0%. TPG pays out -250.0% of its earnings in the form of a dividend. Lazard pays out -1,111.0% 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. Lazard has raised its dividend for 14 consecutive years. Lazard is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares TPG and Lazard’s gross revenue, earnings per share (EPS) and valuation.

Lazard has higher revenue and earnings than TPG. Lazard is trading at a lower price-to-earnings ratio than TPG, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for TPG and Lazard, as reported by MarketBeat.com.

TPG currently has a consensus target price of $33.96, indicating a potential upside of 13.48%. Lazard has a consensus target price of $42.25, indicating a potential upside of 25.78%. Given Lazard’s stronger consensus rating and higher probable upside, analysts clearly believe Lazard is more favorable than TPG.

Risk and Volatility

TPG has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Lazard has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Summary

Lazard beats TPG on 11 of the 17 factors compared between the two stocks.

About TPG

(Get Free Report)

TPG Inc. operates as an alternative asset manager in the United States and internationally. It offers investment management services to TPG Funds, limited partners, and other vehicles; monitoring services to portfolio companies; advisory, debt and equity arrangement, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. The company invests in private equity funds, real estate funds, hedge funds, and credit funds. TPG Inc. was founded in 1992 and is headquartered in Fort Worth, Texas. TPG Inc. is a subsidiary of TPG GP A, LLC.

About Lazard

(Get Free Report)

Lazard Ltd, together with its subsidiaries, operates as a financial advisory and asset management firm in North America, Europe, Asia, Australia, and Central and South America. It operates in two segments, Financial Advisory and Asset Management. The Financial Advisory segment offers various financial advisory services regarding mergers and acquisitions, restructurings, capital advisory, shareholder advisory, capital raising, sovereign advisory, and other strategic advisory matters. This segment serves corporate, partnership, institutional, government, sovereign, and individual clients across various industry areas, including consumers, financial institutions, healthcare and life sciences, industrials, power and energy/infrastructure, and real estate, as well as technology, telecommunication, and media and entertainment. The Asset Management segment offers a range of investment solutions, and investment and wealth management services in equity and fixed income strategies; asset allocation strategies; and alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries, and private clients. Lazard Ltd was founded in 1848 and is based in Hamilton, Bermuda.

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