PJT Partners (PJT) & Its Rivals Critical Analysis

PJT Partners (NYSE: PJT) is one of 19 public companies in the “Investment Banking” industry, but how does it weigh in compared to its peers? We will compare PJT Partners to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
PJT Partners 2.41% -61.67% 10.01%
PJT Partners Competitors 1.63% 5.90% 4.28%

Dividends

PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. PJT Partners pays out 33.9% of its earnings in the form of a dividend. As a group, “Investment Banking” companies pay a dividend yield of 2.5% and pay out -126.9% of their earnings in the form of a dividend. PJT Partners lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares PJT Partners and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
PJT Partners $499.43 million $5.10 million 64.71
PJT Partners Competitors $891.57 million $116.54 million 230.73

PJT Partners’ peers have higher revenue and earnings than PJT Partners. PJT Partners is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

PJT Partners has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, PJT Partners’ peers have a beta of 1.22, indicating that their average stock price is 22% more volatile than the S&P 500.

Insider & Institutional Ownership

59.1% of PJT Partners shares are held by institutional investors. Comparatively, 60.6% of shares of all “Investment Banking” companies are held by institutional investors. 3.3% of PJT Partners shares are held by insiders. Comparatively, 17.8% of shares of all “Investment Banking” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PJT Partners and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PJT Partners 0 0 2 0 3.00
PJT Partners Competitors 69 368 327 25 2.39

PJT Partners presently has a consensus price target of $45.00, suggesting a potential upside of 17.86%. As a group, “Investment Banking” companies have a potential downside of 15.43%. Given PJT Partners’ stronger consensus rating and higher possible upside, equities research analysts clearly believe PJT Partners is more favorable than its peers.

Summary

PJT Partners peers beat PJT Partners on 10 of the 15 factors compared.

About PJT Partners

PJT Partners Inc. is an advisory-focused investment bank. The Company offers an array of strategic advisory, restructuring and special situations and private fund advisory and placement services to corporations, financial sponsors, institutional investors and governments. It provides, through Park Hill Group, private fund advisory and placement services for alternative investment managers, including private equity funds, real estate funds and hedge funds. Its advisory business 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. Its Restructuring and Special Situations Group’s services include advising companies, creditors and financial sponsors on recapitalizations, reorganizations, exchange offers, debt repurchases, capital raises, and distressed mergers and acquisitions.

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