Greystone Housing Impact Investors (NYSE:GHI – Get Free Report) and StepStone Group (NASDAQ:STEP – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Volatility and Risk
Greystone Housing Impact Investors has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, StepStone Group has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Greystone Housing Impact Investors and StepStone Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Greystone Housing Impact Investors | 1 | 0 | 4 | 0 | 2.60 |
| StepStone Group | 1 | 3 | 4 | 1 | 2.56 |
Dividends
Greystone Housing Impact Investors pays an annual dividend of $1.00 per share and has a dividend yield of 13.1%. StepStone Group pays an annual dividend of $1.12 per share and has a dividend yield of 1.6%. Greystone Housing Impact Investors pays out 555.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. StepStone Group pays out -14.0% of its earnings in the form of a dividend. Greystone Housing Impact Investors has increased its dividend for 4 consecutive years and StepStone Group has increased its dividend for 3 consecutive years. Greystone Housing Impact Investors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
9.0% of Greystone Housing Impact Investors shares are held by institutional investors. Comparatively, 55.5% of StepStone Group shares are held by institutional investors. 1.8% of Greystone Housing Impact Investors shares are held by company insiders. Comparatively, 16.5% of StepStone Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Greystone Housing Impact Investors and StepStone Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Greystone Housing Impact Investors | $91.27 million | 1.98 | $21.32 million | $0.18 | 42.53 |
| StepStone Group | $1.17 billion | 7.26 | -$179.56 million | ($8.00) | -9.02 |
Greystone Housing Impact Investors has higher earnings, but lower revenue than StepStone Group. StepStone Group is trading at a lower price-to-earnings ratio than Greystone Housing Impact Investors, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Greystone Housing Impact Investors and StepStone Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Greystone Housing Impact Investors | 8.11% | 8.07% | 1.55% |
| StepStone Group | -40.06% | 21.53% | 5.22% |
Summary
StepStone Group beats Greystone Housing Impact Investors on 9 of the 17 factors compared between the two stocks.
About Greystone Housing Impact Investors
Greystone Housing Impact Investors LP acquires, holds, sells, and deals in a portfolio of mortgage revenue bonds (MRBs) that are issued to provide construction and/or permanent financing for multifamily, student, and senior citizen housing; skilled nursing properties; and commercial properties in the United States. The company operates in four segments: Affordable Multifamily MRB Investments; Seniors and Skilled Nursing MRB Investments; MF Properties; Market-Rate Joint Venture Investments. It also invests in governmental issuer loans. The company was formerly known as America First Multifamily Investors, L.P. and changed its name to Greystone Housing Impact Investors LP in December 2022. Greystone Housing Impact Investors LP was incorporated in 1998 and is based in Omaha, Nebraska.
About StepStone Group
StepStone Group Inc. is a private equity and venture capital firm specializing in direct, fund of funds, secondary direct, and secondary indirect investments. For direct investment, it seeks to invest in private debt, venture debt, incubation, mezzanine, distressed/vulture, seed/startup, early venture, mid venture, late venture, emerging growth, later stage, turnaround, growth capital, industry consolidation, recapitalization, buyout investments in mature and middle market companies. It prefers to invest in natural resources, technology, healthcare, services, materials, manufacturing, consumer durables, apparel, hotels, restaurants and leisure, media, retailing, power, utilities consumer staples, financials, telecommunication services, clean energy/renewables, transport, social, natural capital, infrastructure, corporate, real estate, credit and real asset. The firm invests globally with a focus on United States, North America, Europe, Asia, Latin America, Middle East, Africa, Brazil, Mexico, Argentina, Colombia, New Zealand, China, India, Korea, Japan, Taiwan, and Australia region. The firm invests between 5% and 40% in emerging markets. For fund of fund investment, it seeks to invest in private equity funds, venture capital funds, Special situation funds, Real estate funds, Infrastructure funds, mezzanine funds, and turnaround/distressed funds. It considers investments in both domestic and international funds. It also seeks to make co-investments and follow-on investments and considers partial interests in funds. StepStone Group Inc. was founded in 2007 and is based in New York, New York with additional offices across North America, South America, Europe, Australia and Asia.
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