PJT Partners (NYSE: PJT) and Investment Technology Group (NYSE:ITG) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares PJT Partners and Investment Technology Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PJT Partners -0.27% -115.47% 11.68%
Investment Technology Group -1.77% 3.08% 1.42%

Risk & Volatility

PJT Partners has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Investment Technology Group has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for PJT Partners and Investment Technology Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PJT Partners 0 0 1 0 3.00
Investment Technology Group 0 1 1 0 2.50

PJT Partners currently has a consensus target price of $45.00, suggesting a potential upside of 20.10%. Investment Technology Group has a consensus target price of $20.50, suggesting a potential upside of 2.40%. Given PJT Partners’ stronger consensus rating and higher probable upside, analysts clearly believe PJT Partners is more favorable than Investment Technology Group.

Valuation & Earnings

This table compares PJT Partners and Investment Technology Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PJT Partners $524.92 million 1.32 -$1.85 million ($0.10) -374.70
Investment Technology Group $464.03 million 1.43 -$8.61 million ($0.26) -77.00

PJT Partners has higher revenue and earnings than Investment Technology Group. PJT Partners is trading at a lower price-to-earnings ratio than Investment Technology Group, indicating that it is currently the more affordable of the two stocks.

Dividends

PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Investment Technology Group pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. PJT Partners pays out -200.0% of its earnings in the form of a dividend. Investment Technology Group pays out -107.7% 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.

Insider and Institutional Ownership

59.2% of PJT Partners shares are owned by institutional investors. Comparatively, 87.6% of Investment Technology Group shares are owned by institutional investors. 3.3% of PJT Partners shares are owned by insiders. Comparatively, 2.4% of Investment Technology Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

PJT Partners beats Investment Technology Group on 9 of the 14 factors compared between the two stocks.

PJT Partners Company Profile

PJT Partners Inc. is an advisory-focused investment bank. The Company offers an array of strategic advisory, restructuring and special situations and private fund advisory and placement services to corporations, financial sponsors, institutional investors and governments. It provides, through Park Hill Group, private fund advisory and placement services for alternative investment managers, including private equity funds, real estate funds and hedge funds. Its advisory business offers a range of financial advisory and transaction execution capability, including mergers and acquisitions, joint ventures, minority investments, asset swaps, divestitures, takeover defenses, corporate finance advisory, private placements and distressed sales. Its Restructuring and Special Situations Group’s services include advising companies, creditors and financial sponsors on recapitalizations, reorganizations, exchange offers, debt repurchases, capital raises, and distressed mergers and acquisitions.

Investment Technology Group Company Profile

Investment Technology Group, Inc. (ITG) is a financial technology company that helps brokers and asset managers improve returns for investors around the world. The Company operates through four segments: U.S. Operations, Canadian Operations, European Operations and Asia Pacific Operations. These four segments provide categories of products and services, such as Execution Services, Workflow Technology and Analytics. Execution Services includes self-directed trading using algorithms, smart routing and matching through POSIT in cash equities, futures and options trading and portfolio trading and high-touch trading desks providing execution expertise. Workflow Technology includes trade order and execution management software applications in addition to network connectivity. Analytics includes tools enabling portfolio managers and traders to improve pre-trade, real-time and post-trade execution performance; portfolio construction and optimization decisions, and securities valuation.

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