Contrasting Diamond Hill Investment Group (DHIL) & Noah (NOAH)

Diamond Hill Investment Group (NASDAQ: DHIL) and Noah (NYSE:NOAH) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares Diamond Hill Investment Group and Noah’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diamond Hill Investment Group $136.10 million 5.16 $46.05 million $15.03 13.45
Noah $362.03 million 6.74 $92.73 million $1.80 23.97

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

Profitability

This table compares Diamond Hill Investment Group and Noah’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diamond Hill Investment Group 35.08% 31.76% 23.11%
Noah 29.74% 18.11% 11.84%

Risk & Volatility

Diamond Hill Investment Group has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Noah has a beta of 2.54, suggesting that its stock price is 154% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Diamond Hill Investment Group and Noah, 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
Noah 0 0 0 0 N/A

Institutional & Insider Ownership

61.8% of Diamond Hill Investment Group shares are held by institutional investors. Comparatively, 48.0% of Noah shares are held by institutional investors. 7.3% of Diamond Hill Investment Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Diamond Hill Investment Group beats Noah on 6 of the 11 factors compared between the two stocks.

About Diamond Hill Investment Group

Diamond Hill Investment Group, Inc. provides investment advisory and fund administration services. The Company’s subsidiaries include Diamond Hill Capital Management, Inc. (DHCM), Beacon Hill Fund Services, Inc. (BHFS) and BHIL Distributors, Inc. (BHIL). The Company’s primary objective is to fulfill its fiduciary duty to clients. The Company provides investment management and administration services to mutual funds, institutional accounts and private investment funds. DHCM is an investment advisor to the Diamond Hill Funds (the Funds), a series of open-end mutual funds, private investment funds (Private Funds), an exchange traded fund and other institutional accounts. In addition, DHCM is administrator for the Funds. BHFS provides compliance, treasury and other fund administration services to investment advisors and mutual funds. BHIL is a subsidiary of BHFS. BHIL provides underwriting services to mutual funds. BHFS and BHIL collectively operate as Beacon Hill.

About Noah

Noah Holdings Limited is a wealth management service provider with a focus on global wealth investment and asset allocation services for high net worth individuals and enterprises in China. The Company operates through three segments: wealth management, asset management and Internet finance. It also provides Internet finance services to clients in China. It provides direct access to China’s high net worth population. With approximately 1,100 relationship managers in over 130 branch offices, its coverage network includes China’s regions where high net worth population is concentrated, including the Yangtze River Delta, the Pearl River Delta, the Bohai Rim and other regions. Its product offerings consist primarily of over-the-counter (OTC) wealth management and OTC asset management products, mutual fund products and asset management plans originated in China and designed to cater to the needs of China’s high net worth population.

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