PJT Partners (NYSE:PJT) versus Rithm Capital (NYSE:RITM) Financial Survey

PJT Partners (NYSE:PJT) and Rithm Capital (NYSE:RITM) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PJT Partners and Rithm Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PJT Partners	2	2	2	1	2.29
Rithm Capital	1	0	10	0	2.82

PJT Partners presently has a consensus target price of $173.33, suggesting a potential upside of 11.33%. Rithm Capital has a consensus target price of $13.35, suggesting a potential upside of 44.79%. Given Rithm Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Rithm Capital is more favorable than PJT Partners.

Volatility and Risk

PJT Partners has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Rithm Capital has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Earnings and Valuation

This table compares PJT Partners and Rithm Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PJT Partners	$1.71 billion	2.35	$180.12 million	$6.86	22.70
Rithm Capital	$4.59 billion	1.12	$681.45 million	$1.09	8.46

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

Dividends

PJT Partners pays an annual dividend of $1.00 per share and has a dividend yield of 0.6%. Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 10.8%. PJT Partners pays out 14.6% of its earnings in the form of a dividend. Rithm Capital pays out 91.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares PJT Partners and Rithm Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PJT Partners	10.32%	32.00%	17.92%
Rithm Capital	14.44%	19.48%	2.87%

Institutional and Insider Ownership

89.2% of PJT Partners shares are owned by institutional investors. Comparatively, 44.9% of Rithm Capital shares are owned by institutional investors. 11.0% of PJT Partners shares are owned by company insiders. Comparatively, 0.6% of Rithm Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

PJT Partners beats Rithm Capital on 9 of the 17 factors compared between the two stocks.

About PJT Partners

PJT Partners Inc., an investment bank, provides various strategic and capital markets advisory, restructuring and special situations, and shareholder advisory services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers advisory services to clients on various transactions, including mergers and acquisitions (M&A), spin-offs, activism defense, contested M&A, joint ventures, minority investments, and divestitures. The company also advises private and public company boards and management teams on strategies for building productive investor relationships with a focus on shareholder engagement; and strategic investor relations; environmental, social, and governance matters; and other investor-related matters. In addition, it provides advisory services related to debt and acquisition financings; structured product offerings; public equity raises, including initial public offering and SPAC offerings; and private capital raises for early and later stage companies, as well as other capital structure related matters. Further, the company offers advisory services in financial restructurings and reorganizations; liability management; distressed mergers and acquisitions; and to management teams, corporate boards, sponsors and creditors. Additionally, it provides private fund advisory and fundraising services for a range of investment strategies; and advisory services to general and partners on liquidity and other structured solutions. The company was formerly known as Blackstone Advisory Inc. and changed its name to PJT Partners Inc. in March 2015. PJT Partners Inc. was incorporated in 2014 and is headquartered in New York, New York.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.