Diamond Hill Investment Group (NASDAQ:DHIL – Get Free Report) and TPG (NASDAQ:TPG – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Dividends
Diamond Hill Investment Group pays an annual dividend of $6.00 per share and has a dividend yield of 3.6%. TPG pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. Diamond Hill Investment Group pays out 37.0% of its earnings in the form of a dividend. TPG pays out 1,257.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diamond Hill Investment Group has raised its dividend for 1 consecutive years. Diamond Hill Investment Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Diamond Hill Investment Group has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, TPG has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Diamond Hill Investment Group | 34.88% | 21.32% | 14.60% |
| TPG | 4.95% | 16.98% | 6.49% |
Valuation & Earnings
This table compares Diamond Hill Investment Group and TPG’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Diamond Hill Investment Group | $154.50 million | 3.18 | $40.43 million | $16.21 | 10.32 |
| TPG | $2.26 billion | 4.13 | -$56.24 million | $0.07 | 431.00 |
Diamond Hill Investment Group has higher earnings, but lower revenue than TPG. Diamond Hill Investment Group 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 current ratings and price targets for Diamond Hill Investment Group and TPG, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Diamond Hill Investment Group | 0 | 0 | 0 | 0 | N/A |
| TPG | 0 | 9 | 4 | 0 | 2.31 |
TPG has a consensus price target of $32.50, indicating a potential upside of 7.72%. Given TPG’s higher probable upside, analysts clearly believe TPG is more favorable than Diamond Hill Investment Group.
Institutional & Insider Ownership
65.5% of Diamond Hill Investment Group shares are owned by institutional investors. Comparatively, 12.5% of TPG shares are owned by institutional investors. 3.5% of Diamond Hill Investment Group shares are owned by company insiders. Comparatively, 78.7% of TPG shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Diamond Hill Investment Group beats TPG on 9 of the 16 factors compared between the two stocks.
About Diamond Hill Investment Group
Diamond Hill Investment Group, Inc., through its subsidiary, Diamond Hill Capital Management, Inc., provides investment advisory and fund administration services in the United States. It sponsors, distributes, and offers investment advisory and related services to its clients through pooled investment vehicles, including the Diamond Hill Funds, separately managed accounts, and model delivery programs. The company also provides fund administration services, including portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the mutual fund complex, as well as oversight of back-office service providers, such as the custodian, fund accountant, and transfer agent. Diamond Hill Investment Group, Inc. was founded in 1990 and is based in Columbus, Ohio.
About TPG
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.
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