Lazard (NYSE: LAZ) and Moelis & (NYSE:MC) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Institutional & Insider Ownership
73.7% of Lazard shares are owned by institutional investors. Comparatively, 90.9% of Moelis & shares are owned by institutional investors. 2.5% of Lazard shares are owned by company insiders. Comparatively, 64.5% of Moelis & shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Lazard has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Moelis & has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500.
This table compares Lazard and Moelis &’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Lazard and Moelis &’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lazard||$2.64 billion||2.12||$458.07 million||$3.53||12.22|
|Moelis &||$700.69 million||1.51||$55.04 million||$2.00||19.28|
Lazard has higher revenue and earnings than Moelis &. Lazard is trading at a lower price-to-earnings ratio than Moelis &, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Lazard and Moelis &, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lazard presently has a consensus price target of $46.29, indicating a potential upside of 7.29%. Moelis & has a consensus price target of $37.57, indicating a potential downside of 2.54%. Given Lazard’s higher probable upside, analysts plainly believe Lazard is more favorable than Moelis &.
Lazard pays an annual dividend of $1.64 per share and has a dividend yield of 3.8%. Moelis & pays an annual dividend of $1.48 per share and has a dividend yield of 3.8%. Lazard pays out 46.5% of its earnings in the form of a dividend. Moelis & pays out 74.0% 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. Lazard has raised its dividend for 6 consecutive years and Moelis & has raised its dividend for 2 consecutive years.
Lazard beats Moelis & on 8 of the 15 factors compared between the two stocks.
Lazard Ltd (Lazard) is a financial advisory and asset management company. The Company operates through two segments: Financial Advisory and Asset Management. It serves a range of clients around the world, including corporations, governments, institutions, partnerships and individuals. The Financial Advisory business segment offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a range of financial advisory services regarding mergers and acquisitions (M&A) and other strategic matters, restructurings, capital structure, capital raising and various other financial matters to corporate, partnership, institutional, government, sovereign and individual clients. The Asset Management business provides investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds and sovereign entities.
About Moelis &
Moelis & Company is an investment banking advisory company. The Company provides strategic and financial advice to a client base, including corporations, governments and financial sponsors. The Company offers financial advisory services across various industry sectors. It advices its clients on decisions, including mergers and acquisitions (M&A), recapitalizations and restructurings, and other corporate finance matters. With 17 offices located in North and South America, Europe, the Middle East, Asia and Australia, the Company provided information flow and cross-border solutions as of December 31, 2016. The Company offers advisory services in all industries, including consumer, retail and restaurants; energy, power and infrastructure; financial institutions; financial sponsors; general industrials; healthcare; real estate, gaming, lodging and leisure, and technology, media and telecommunications. It advises clients on all aspects of public and private debt and equity transactions.
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