Fifth Street Asset Management (NASDAQ: FSAM) and Cohen & Steers (NYSE:CNS) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Insider & Institutional Ownership
6.4% of Fifth Street Asset Management shares are held by institutional investors. Comparatively, 45.0% of Cohen & Steers shares are held by institutional investors. 86.0% of Fifth Street Asset Management shares are held by company insiders. Comparatively, 52.9% of Cohen & Steers shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Fifth Street Asset Management pays an annual dividend of $0.50 per share and has a dividend yield of 12.5%. Cohen & Steers pays an annual dividend of $1.12 per share and has a dividend yield of 2.9%. Fifth Street Asset Management pays out -5,000.0% of its earnings in the form of a dividend. Cohen & Steers pays out 54.4% 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. Cohen & Steers has increased its dividend for 5 consecutive years. Fifth Street Asset Management is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Fifth Street Asset Management and Cohen & Steers’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fifth Street Asset Management||$79.14 million||0.79||$42.32 million||($0.01)||-400.00|
|Cohen & Steers||$366.32 million||4.94||$150.50 million||$2.06||18.98|
Cohen & Steers has higher revenue and earnings than Fifth Street Asset Management. Fifth Street Asset Management is trading at a lower price-to-earnings ratio than Cohen & Steers, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Fifth Street Asset Management has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Cohen & Steers has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Fifth Street Asset Management and Cohen & Steers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fifth Street Asset Management||0||1||1||0||2.50|
|Cohen & Steers||1||2||1||0||2.00|
Fifth Street Asset Management currently has a consensus target price of $5.13, suggesting a potential upside of 28.13%. Cohen & Steers has a consensus target price of $44.33, suggesting a potential upside of 13.41%. Given Fifth Street Asset Management’s stronger consensus rating and higher possible upside, analysts clearly believe Fifth Street Asset Management is more favorable than Cohen & Steers.
This table compares Fifth Street Asset Management and Cohen & Steers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fifth Street Asset Management||1.55%||-527.80%||18.00%|
|Cohen & Steers||26.34%||33.17%||26.42%|
Cohen & Steers beats Fifth Street Asset Management on 11 of the 16 factors compared between the two stocks.
Fifth Street Asset Management Company Profile
Fifth Street Asset Management Inc. is an alternative asset manager. The Company provides asset management services to its investment funds (the Fifth Street Funds or the funds), which consist of Fifth Street Finance Corp. (FSC) and Fifth Street Senior Floating Rate Corp. (FSFR), both publicly-traded business development companies (together, the BDCs). Its segment provides asset management services to the Fifth Street Funds. The Company conducts all of its operations through its subsidiaries, Fifth Street Management LLC (FSM), Fifth Street CLO Management LLC (CLO Management) and FSCO GP LLC (FSCO GP). The funds, managed by the Company, provide financing solutions to small and mid-sized companies across their capital structures, mainly in connection with investments by private equity sponsors. It provides credit solutions across the capital structure, including one-stop financing, unitranche debt, senior secured debt, mezzanine debt, equity co-investments and venture debt financing.
Cohen & Steers Company Profile
Cohen & Steers, Inc. (CNS) is a holding company. The Company is an investment manager with a focus on liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. The Company serves institutional and individual investors. The Company manages three types of investment vehicles: institutional accounts, open-end funds and closed-end funds. The Company also provides services in connection with model-based strategies (MBS) accounts. In addition, the Company provides several services in connection with assets held by unit investment trusts (UITs). As a portfolio consultant to a number of UITs, the Company constructs a portfolio of securities that suit the investment objective of the UIT. The Company also provides ongoing portfolio monitoring services and provides a license to certain firms to use its name in connection with certain of their investment products.
What are top analysts saying about Fifth Street Asset Management Inc.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Fifth Street Asset Management Inc. and related companies.