Och-Ziff Capital Management Group (NYSE:OZM) vs. SEI Investments (SEIC) Critical Analysis
Och-Ziff Capital Management Group (NYSE: OZM) and SEI Investments (NASDAQ:SEIC) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitabiliy.
Volatility and Risk
Och-Ziff Capital Management Group has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, SEI Investments has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Och-Ziff Capital Management Group and SEI Investments, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Och-Ziff Capital Management Group||0||6||1||0||2.14|
Och-Ziff Capital Management Group currently has a consensus price target of $3.50, indicating a potential upside of 12.54%. SEI Investments has a consensus price target of $58.00, indicating a potential upside of 1.38%. Given Och-Ziff Capital Management Group’s higher probable upside, research analysts clearly believe Och-Ziff Capital Management Group is more favorable than SEI Investments.
Insider & Institutional Ownership
53.4% of Och-Ziff Capital Management Group shares are held by institutional investors. Comparatively, 69.5% of SEI Investments shares are held by institutional investors. 60.3% of Och-Ziff Capital Management Group shares are held by insiders. Comparatively, 17.1% of SEI Investments shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Och-Ziff Capital Management Group pays an annual dividend of $0.08 per share and has a dividend yield of 2.6%. SEI Investments pays an annual dividend of $0.56 per share and has a dividend yield of 1.0%. Och-Ziff Capital Management Group pays out -19.5% of its earnings in the form of a dividend. SEI Investments pays out 26.4% 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. SEI Investments has increased its dividend for 7 consecutive years. Och-Ziff Capital Management Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Och-Ziff Capital Management Group and SEI Investments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Och-Ziff Capital Management Group||-8.27%||-41.72%||9.21%|
Earnings and Valuation
This table compares Och-Ziff Capital Management Group and SEI Investments’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Och-Ziff Capital Management Group||$721.07 million||0.80||-$110.19 million||($0.41)||-7.59|
|SEI Investments||$1.43 billion||6.35||$409.53 million||$2.12||26.99|
SEI Investments has higher revenue and earnings than Och-Ziff Capital Management Group. Och-Ziff Capital Management Group is trading at a lower price-to-earnings ratio than SEI Investments, indicating that it is currently the more affordable of the two stocks.
SEI Investments beats Och-Ziff Capital Management Group on 12 of the 16 factors compared between the two stocks.
About Och-Ziff Capital Management Group
Och-Ziff Capital Management Group LLC (Och-Ziff) is an institutional alternative asset manager. The Company provides asset management services through its funds, which pursue a range of global investment opportunities. The Company operates through two segments: the Och-Ziff Funds and real estate business. The Och-Ziff Funds segment provides asset management services to its multi-strategy funds, credit funds and other alternative investment vehicles. The real estate business segment provides asset management services to its real estate funds and is included within Other Operations. The Company offers customized solutions within and across its product platforms to help its fund investors meet their investment objectives. The Company’s global multi-strategy fund, The OZ Master Fund, allocates capital between its investment strategies in North America, Europe and Asia based on market conditions and investment opportunities.
About SEI Investments
SEI Investments Company provides investment processing, investment management and investment operations solutions. The Company provides its solutions to financial institutions, financial advisors, institutional investors, investment managers and ultra-high-net-worth families in the United States, Canada, the United Kingdom, continental Europe and various other locations around the world. The Company’s segments are Private Banks, Investment Advisors, Institutional Investors, Investment Managers and Investments in New Businesses. The Company’s investment management business solutions include investment processing outsourcing solutions for providers of institutional and private-client wealth management services, including banks, trust companies, independent wealth advisors and other financial services firms, and investment management solutions for institutional investors, including retirement plan sponsors, not-for-profit organizations and individual investors.
Receive News & Ratings for Och-Ziff Capital Management Group LLC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Och-Ziff Capital Management Group LLC and related companies with MarketBeat.com's FREE daily email newsletter.