Head-To-Head Analysis: Morningstar (MORN) versus Silvercrest Asset Management Group (SAMG)

Morningstar (NASDAQ:MORN) and Silvercrest Asset Management Group (NASDAQ:SAMG) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Profitability

This table compares Morningstar and Silvercrest Asset Management Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Morningstar 16.15% 17.53% 10.28%
Silvercrest Asset Management Group 6.61% 18.35% 12.30%

Volatility and Risk

Morningstar has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Silvercrest Asset Management Group has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Insider and Institutional Ownership

39.6% of Morningstar shares are owned by institutional investors. Comparatively, 49.7% of Silvercrest Asset Management Group shares are owned by institutional investors. 57.5% of Morningstar shares are owned by insiders. Comparatively, 10.2% of Silvercrest Asset Management Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Morningstar and Silvercrest Asset Management Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Morningstar $911.70 million 5.47 $136.90 million N/A N/A
Silvercrest Asset Management Group $91.36 million 1.99 $5.33 million N/A N/A

Morningstar has higher revenue and earnings than Silvercrest Asset Management Group.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Morningstar and Silvercrest Asset Management Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Morningstar 0 0 0 0 N/A
Silvercrest Asset Management Group 0 0 1 0 3.00

Silvercrest Asset Management Group has a consensus price target of $20.00, suggesting a potential upside of 45.56%. Given Silvercrest Asset Management Group’s higher probable upside, analysts clearly believe Silvercrest Asset Management Group is more favorable than Morningstar.

Dividends

Morningstar pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. Silvercrest Asset Management Group pays an annual dividend of $0.56 per share and has a dividend yield of 4.1%. Morningstar has increased its dividend for 6 consecutive years.

About Morningstar

Morningstar, Inc. provides independent investment research services in North America, Europe, Australia, and Asia. It offers a line of data, research, and software tools on a range of investment offerings, including managed investment products, publicly listed companies, fixed income securities, private capital markets, and real-time global market data for financial advisors, asset managers, retirement plan providers and sponsors, and individual and institutional investors. The company offers Morningstar Data, an investment data spanning various investment databases, including pricing and commodity data; Morningstar Direct, an institutional investment research platform; investment management solutions, which include Morningstar Managed Portfolios, the strategist models on third-party managed account platforms, as well as services for institutional asset management, asset allocation, and manager selection; institutional asset management services for asset management firms, broker-dealers, and insurance providers; Morningstar Advisor Workstation, a Web-based investment planning system; and Morningstar.com, a Website for individual investors. It also provides Morningstar Enterprise Components, a set of tools and capabilities that builds customized Websites or enhances existing solutions; Morningstar Research, which includes equity research and manager research; Morningstar Credit Ratings that provides new issue and surveillance ratings and analysis for structured credits, as well as operational risk assessment services; Morningstar Indexes, a set of investment indexes; workplace solutions, such as retirement advice and managed accounts, fiduciary services, and custom models; a mobile application, excel plug-in, data feeds, and data solutions; equity and manager research, and credit rating services; and institutional asset management, asset allocation, and manager selection services. The company was founded in 1984 and is headquartered in Chicago, Illinois.

About Silvercrest Asset Management Group

Silvercrest Asset Management Group Inc., a wealth management firm, provides financial advisory and related family office services in the United States. The company serves ultra-high net worth individuals and families, as well as their trusts; endowments; foundations; and other institutional investors. It also manages funds of funds and other investment funds. The company was founded in 2002 and is headquartered in New York, New York.

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