Head-To-Head Contrast: Janus Henderson Group (NYSE:JHG) versus Cannae (NYSE:CNNE)

Cannae (NYSE:CNNE) and Janus Henderson Group (NYSE:JHG) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Insider & Institutional Ownership

88.1% of Cannae shares are owned by institutional investors. Comparatively, 87.9% of Janus Henderson Group shares are owned by institutional investors. 10.9% of Cannae shares are owned by insiders. Comparatively, 19.6% of Janus Henderson Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Cannae and Janus Henderson Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cannae	$452.50 million	1.44	-$304.60 million	($7.73)	-1.71
Janus Henderson Group	$3.10 billion	2.50	$815.90 million	$5.26	9.54

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

Profitability

This table compares Cannae and Janus Henderson Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cannae	-108.39%	-23.16%	-18.38%
Janus Henderson Group	25.83%	14.70%	9.60%

Dividends

Cannae pays an annual dividend of $0.60 per share and has a dividend yield of 4.5%. Janus Henderson Group pays an annual dividend of $1.60 per share and has a dividend yield of 3.2%. Cannae pays out -7.8% of its earnings in the form of a dividend. Janus Henderson Group pays out 30.4% 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. Janus Henderson Group has raised its dividend for 1 consecutive years. Cannae is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Cannae has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Janus Henderson Group has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Cannae and Janus Henderson Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cannae	1	1	2	0	2.25
Janus Henderson Group	0	6	3	2	2.64

Cannae currently has a consensus price target of $20.50, indicating a potential upside of 55.29%. Janus Henderson Group has a consensus price target of $47.67, indicating a potential downside of 4.97%. Given Cannae’s higher possible upside, equities research analysts plainly believe Cannae is more favorable than Janus Henderson Group.

Summary

Janus Henderson Group beats Cannae on 14 of the 18 factors compared between the two stocks.

About Cannae

Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. was founded in 2014 and is based in Las Vegas, Nevada.

About Janus Henderson Group

Janus Henderson Group plc is an asset management holding entity. Through its subsidiaries, the firm provides services to institutional, retail clients, and high net worth clients. It manages separate client-focused equity and fixed income portfolios. The firm also manages equity, fixed income, and balanced mutual funds for its clients. It invests in public equity and fixed income markets, as well as invests in real estate and private equity. Janus Henderson Group plc was founded in 1934 and is based in London, United Kingdom with additional offices in Jersey, United Kingdom and Sydney, Australia.