Hamilton Lane (NASDAQ:HLNE) and Nomura (NYSE:NMR) Financial Comparison

Hamilton Lane (NASDAQ:HLNE) and Nomura (NYSE:NMR) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Institutional & Insider Ownership

97.4% of Hamilton Lane shares are owned by institutional investors. Comparatively, 15.1% of Nomura shares are owned by institutional investors. 24.0% of Hamilton Lane shares are owned by insiders. Comparatively, 0.0% of Nomura shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Hamilton Lane has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Nomura has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Valuation and Earnings

This table compares Hamilton Lane and Nomura”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Lane	$758.99 million	5.99	$249.18 million	$6.56	12.48
Nomura	$31.61 billion	0.86	$2.39 billion	$0.86	10.74

Nomura has higher revenue and earnings than Hamilton Lane. Nomura is trading at a lower price-to-earnings ratio than Hamilton Lane, indicating that it is currently the more affordable of the two stocks.

Dividends

Hamilton Lane pays an annual dividend of $2.40 per share and has a dividend yield of 2.9%. Nomura pays an annual dividend of $0.24 per share and has a dividend yield of 2.6%. Hamilton Lane pays out 36.6% of its earnings in the form of a dividend. Nomura pays out 27.9% 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. Hamilton Lane has raised its dividend for 8 consecutive years. Hamilton Lane is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Hamilton Lane and Nomura, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Lane	0	2	7	1	2.90
Nomura	0	0	4	1	3.20

Hamilton Lane currently has a consensus price target of $124.00, suggesting a potential upside of 51.52%. Nomura has a consensus price target of $10.20, suggesting a potential upside of 10.45%. Given Hamilton Lane’s higher possible upside, equities research analysts plainly believe Hamilton Lane is more favorable than Nomura.

Profitability

This table compares Hamilton Lane and Nomura’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hamilton Lane	32.14%	25.10%	15.75%
Nomura	8.09%	10.42%	0.63%

Summary

Hamilton Lane beats Nomura on 13 of the 17 factors compared between the two stocks.

About Hamilton Lane

Hamilton Lane Incorporated is a private equity firm specializing in early venture, emerging growth, turnaround, middle market, mature, mid-venture, bridge, buyout, distressed/vulture, loan, mezzanine in growth capital companies. It prefers to invest in energy, industrials, consumer discretionary, health care, real estate, information technology, utilities, and consumer services. The firm prefers to invest in Africa/Middle East, Asia/Pacific, Europe, Latin America and Caribbean, United States of America, and Canada. The firm prefers to invest between $1 million and $100 million. It prefers to take majority stake. Hamilton Lane Incorporated was founded in 1991 and is based in Conshohocken, Pennsylvania with additional offices across Europe, North America, Asia Pacific and the Middle East.

About Nomura

Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. It operates through three segments: Retail, Investment Management, and Wholesale. The Retail segment offers various financial products and investment consultation services. The Investment Management segment engages in the management of funds, investment trusts, and other investment solutions; and provision of investment advisory, custodial, and administrative services. The Wholesale segment is involved in the research, sale, trading, agency execution, and market-making of fixed income and equity-related products. This segment also engages in underwriting various securities and other financial instruments, such as various classes of shares, convertible and exchangeable securities, investment grade and high yield debts, sovereign and emerging market debts, structured securities, and other securities; arranging private placements, as well as other capital raising activities; and the provision of financial advisory services on business transactions comprising mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions. The company was formerly known as The Nomura Securities Co., Ltd. and changed its name to Nomura Holdings, Inc. in October 2001. Nomura Holdings, Inc. was incorporated in 1925 and is headquartered in Tokyo, Japan.