PJT Partners (NYSE: PJT) and TD Ameritrade Holding Corporation (NASDAQ:AMTD) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Insider & Institutional Ownership

59.2% of PJT Partners shares are owned by institutional investors. Comparatively, 93.6% of TD Ameritrade Holding Corporation shares are owned by institutional investors. 3.3% of PJT Partners shares are owned by company insiders. Comparatively, 0.4% of TD Ameritrade Holding Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares PJT Partners and TD Ameritrade Holding Corporation’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%
TD Ameritrade Holding Corporation 24.01% 16.09% 2.89%

Volatility and Risk

PJT Partners has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, TD Ameritrade Holding Corporation has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for PJT Partners and TD Ameritrade Holding Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PJT Partners 0 0 1 0 3.00
TD Ameritrade Holding Corporation 0 6 9 0 2.60

PJT Partners presently has a consensus price target of $45.00, indicating a potential upside of 20.35%. TD Ameritrade Holding Corporation has a consensus price target of $44.75, indicating a potential downside of 1.10%. Given PJT Partners’ stronger consensus rating and higher probable upside, equities analysts clearly believe PJT Partners is more favorable than TD Ameritrade Holding Corporation.

Dividends

PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. TD Ameritrade Holding Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. PJT Partners pays out -200.0% of its earnings in the form of a dividend. TD Ameritrade Holding Corporation pays out 45.0% 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.

Valuation & Earnings

This table compares PJT Partners and TD Ameritrade Holding Corporation’s gross 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) -373.90
TD Ameritrade Holding Corporation $3.46 billion 6.91 $845.04 million $1.60 28.28

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

Summary

TD Ameritrade Holding Corporation beats PJT Partners on 11 of the 16 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.

TD Ameritrade Holding Corporation Company Profile

TD Ameritrade Holding Corporation is a provider of securities brokerage services and related technology-based financial services. The Company provides its services to retail investors, traders and independent registered investment advisors (RIAs). The Company provides its services through the Internet, a national branch network and relationships with RIAs. The Company’s products and services include common and preferred stock, exchange-traded funds, options, futures, foreign exchange, mutual funds, fixed income, new and secondary issue securities, margin lending, cash management services and annuities. The Company uses its platform to offer brokerage services to retail investors and investment advisors. In addition, it also offers various products and services to retail clients, such as touch-tone trading, trading over the Internet, real-time quotes, extended trading hours and direct access to market destinations.

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