Financial Review: AllianceBernstein (AB) and PJT Partners (PJT)

AllianceBernstein (NYSE: AB) and PJT Partners (NYSE:PJT) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares AllianceBernstein and PJT Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AllianceBernstein 6.53% 16.37% 16.37%
PJT Partners -5.59% 44.79% 11.34%

Valuation & Earnings

This table compares AllianceBernstein and PJT Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AllianceBernstein $3.30 billion 0.82 $207.42 million $2.30 12.04
PJT Partners $499.28 million 2.22 -$28.32 million $1.54 35.27

AllianceBernstein has higher revenue and earnings than PJT Partners. AllianceBernstein 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

AllianceBernstein pays an annual dividend of $2.92 per share and has a dividend yield of 10.5%. PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. AllianceBernstein pays out 127.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PJT Partners pays out 13.0% of its earnings in the form of a dividend.

Risk & Volatility

AllianceBernstein has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, PJT Partners has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Insider and Institutional Ownership

22.8% of AllianceBernstein shares are owned by institutional investors. Comparatively, 60.0% of PJT Partners shares are owned by institutional investors. 2.7% of AllianceBernstein shares are owned by insiders. Comparatively, 8.0% of PJT Partners shares are owned by 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for AllianceBernstein and PJT Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AllianceBernstein 0 1 2 0 2.67
PJT Partners 0 2 2 0 2.50

AllianceBernstein presently has a consensus price target of $29.50, suggesting a potential upside of 6.50%. PJT Partners has a consensus price target of $53.25, suggesting a potential downside of 1.95%. Given AllianceBernstein’s stronger consensus rating and higher possible upside, research analysts plainly believe AllianceBernstein is more favorable than PJT Partners.

Summary

AllianceBernstein beats PJT Partners on 9 of the 15 factors compared between the two stocks.

AllianceBernstein Company Profile

AllianceBernstein Holding L.P. is publicly owned investment manager. The firm also provides research services to its clients. It provides its services to investment companies, pension and profit sharing plans, banks and thrift institutions, trusts, estates, government agencies, charitable organizations, individuals, corporations, and other business entities. The firm invests in public equity, fixed income, and alternative investment markets across the globe. It employs long/short strategy to make its investments. The firm conducts in-house research to make its investments. AllianceBernstein Holding L.P. was founded in 1987 and is based in New York, New York.

PJT Partners Company Profile

PJT Partners Inc. provides various strategic advisory, restructuring and special situations, and private fund advisory and placement services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers a range of financial advisory and transaction execution capability, including mergers and acquisitions, joint ventures, minority investments, asset swaps, divestitures, takeover defenses, corporate finance advisory, private placements, and distressed sales. The company also advices companies, creditors, and financial sponsors on recapitalizations, reorganizations, exchange offers, debt repurchases, capital raises, and distressed mergers and acquisitions. In addition, it offers private fund advisory and placement services for a range of investment strategies, including private equity, hedge fund, real estate, and secondary advisory. 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.

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