Head to Head Comparison: Fifth Street Asset Management (FSAM) vs. Blackstone Group (BX)

Fifth Street Asset Management (NYSE: BX) and Blackstone Group (NYSE:BX) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Profitability

This table compares Fifth Street Asset Management and Blackstone Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fifth Street Asset Management N/A N/A N/A
Blackstone Group 22.12% 22.64% 9.95%

Risk and Volatility

Fifth Street Asset Management has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Blackstone Group has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Valuation and Earnings

This table compares Fifth Street Asset Management and Blackstone Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fifth Street Asset Management $82.55 million 0.83 -$1.53 million N/A N/A
Blackstone Group $7.12 billion 3.70 $1.47 billion $2.81 14.05

Blackstone Group has higher revenue and earnings than Fifth Street Asset Management.

Dividends

Blackstone Group pays an annual dividend of $2.32 per share and has a dividend yield of 5.9%. Fifth Street Asset Management does not pay a dividend. Blackstone Group pays out 82.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blackstone Group has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of current ratings for Fifth Street Asset Management and Blackstone Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fifth Street Asset Management 0 0 0 0 N/A
Blackstone Group 0 1 8 0 2.89

Blackstone Group has a consensus target price of $42.63, suggesting a potential upside of 7.94%. Given Blackstone Group’s higher possible upside, analysts clearly believe Blackstone Group is more favorable than Fifth Street Asset Management.

Insider and Institutional Ownership

0.1% of Fifth Street Asset Management shares are held by institutional investors. Comparatively, 48.8% of Blackstone Group shares are held by institutional investors. 85.4% of Fifth Street Asset Management shares are held by company insiders. Comparatively, 1.0% of Blackstone Group shares are held by company 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.

Summary

Blackstone Group beats Fifth Street Asset Management on 13 of the 15 factors compared between the two stocks.

Fifth Street Asset Management Company Profile

Fifth Street Asset Management Inc. is an asset management holding company. The firm provides asset management services through its subsidiaries. Fifth Street Asset Management Inc. was founded in 1998 and is headquartered in Greenwich, Connecticut.

Blackstone Group Company Profile

The Blackstone Group L.P. is a publicly owned hedge fund sponsor. The firm also provides financial advisory services to its clients. It provides its services to public and corporate pension funds, academic, cultural, and charitable organizations, retirees, sovereign wealth funds, and institutional and individual investors. The firm manages separate client focused portfolios for its clients. It launches fixed income mutual funds. The firm also launches and manages private equity funds, real estate funds, funds of hedge funds, and credit-focused funds for its clients. It invests in private equity, public equity, fixed income, and alternative investment markets. The Blackstone Group L.P. was founded in 1985 and is based in New York City with additional offices in San Francisco, California, London, United Kingdom, Hong Kong, Beijing, China, Dubai, UAE, Dusseldorf, Germany, Los Angeles, Santa Monica, Mexico City, Mexico, Paris, France, Sao Paulo, Brazil, Seoul, Korea, Shanghai, China, Singapore, Sydney, Australia, Copenhagen, Denmark, Toronto, Canada, Baltimore, Maryland, and Tokyo, Japan.

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