Reviewing TPG (NASDAQ:TPG) & Artisan Partners Asset Management (NYSE:APAM)

Artisan Partners Asset Management (NYSE:APAM) and TPG (NASDAQ:TPG) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Earnings & Valuation

This table compares Artisan Partners Asset Management and TPG”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Artisan Partners Asset Management	$1.20 billion	2.73	$290.32 million	$4.23	9.52
TPG	$4.67 billion	4.01	$184.59 million	$0.87	56.08

Artisan Partners Asset Management has higher earnings, but lower revenue than TPG. Artisan Partners Asset Management is trading at a lower price-to-earnings ratio than TPG, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Artisan Partners Asset Management and TPG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Artisan Partners Asset Management	24.54%	71.69%	22.27%
TPG	5.32%	29.05%	8.15%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Artisan Partners Asset Management and TPG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Artisan Partners Asset Management	2	3	1	0	1.83
TPG	0	4	11	0	2.73

Artisan Partners Asset Management currently has a consensus target price of $34.75, suggesting a potential downside of 13.69%. TPG has a consensus target price of $61.00, suggesting a potential upside of 25.03%. Given TPG’s stronger consensus rating and higher probable upside, analysts clearly believe TPG is more favorable than Artisan Partners Asset Management.

Institutional and Insider Ownership

86.5% of Artisan Partners Asset Management shares are owned by institutional investors. Comparatively, 94.0% of TPG shares are owned by institutional investors. 11.3% of Artisan Partners Asset Management shares are owned by company insiders. Comparatively, 61.4% of TPG shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Artisan Partners Asset Management pays an annual dividend of $3.20 per share and has a dividend yield of 7.9%. TPG pays an annual dividend of $2.20 per share and has a dividend yield of 4.5%. Artisan Partners Asset Management pays out 75.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TPG pays out 252.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Artisan Partners Asset Management is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Artisan Partners Asset Management has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500. Comparatively, TPG has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.

About Artisan Partners Asset Management

Artisan Partners Asset Management is a global investment management firm that provides active investment strategies to institutional and individual investors. The firm manages portfolios through specialized investment teams, each with its own investment approach and research process. Its offerings include equity and fixed-income strategies spanning a range of styles, market sectors and geographies. These strategies are available through vehicles such as mutual funds and separate accounts, serving clients including institutions and financial intermediaries.

About TPG

TPG Inc. is a global alternative asset management firm that invests across private equity, growth equity, impact investing, real estate, credit and other investment strategies. The company manages investment funds and related products for institutional and individual investors. Founded in 1992 as Texas Pacific Group, TPG has expanded its investment platforms over time, including through its acquisition of Angelo Gordon, which added to its credit and real estate capabilities. The firm invests in businesses and assets across multiple industries and geographies, with operations and investment teams serving markets around the world.