TD Ameritrade Holding Corporation (NASDAQ: AMTD) and PJT Partners (NYSE:PJT) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for TD Ameritrade Holding Corporation and PJT Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TD Ameritrade Holding Corporation 0 6 9 0 2.60
PJT Partners 0 0 1 0 3.00

TD Ameritrade Holding Corporation currently has a consensus price target of $44.75, indicating a potential upside of 3.71%. PJT Partners has a consensus price target of $45.00, indicating a potential upside of 19.62%. Given PJT Partners’ stronger consensus rating and higher possible upside, analysts plainly believe PJT Partners is more favorable than TD Ameritrade Holding Corporation.

Profitability

This table compares TD Ameritrade Holding Corporation and PJT Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TD Ameritrade Holding Corporation 24.01% 16.09% 2.89%
PJT Partners -0.27% -115.47% 11.68%

Dividends

TD Ameritrade Holding Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. TD Ameritrade Holding Corporation pays out 45.0% of its earnings in the form of a dividend. PJT Partners pays out -200.0% 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.

Risk & Volatility

TD Ameritrade Holding Corporation has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, PJT Partners has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Insider and Institutional Ownership

93.6% of TD Ameritrade Holding Corporation shares are owned by institutional investors. Comparatively, 59.2% of PJT Partners shares are owned by institutional investors. 0.4% of TD Ameritrade Holding Corporation shares are owned by insiders. Comparatively, 3.3% of PJT Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares TD Ameritrade Holding Corporation and PJT Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TD Ameritrade Holding Corporation $3.46 billion 6.59 $845.04 million $1.60 26.97
PJT Partners $524.92 million 1.33 -$1.85 million ($0.10) -376.20

TD Ameritrade Holding Corporation has higher revenue and earnings than PJT Partners. PJT Partners is trading at a lower price-to-earnings ratio than TD Ameritrade Holding Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

TD Ameritrade Holding Corporation beats PJT Partners on 11 of the 16 factors compared between the two stocks.

TD Ameritrade Holding Corporation Company Profile

TD Ameritrade Holding Corporation is a provider of securities brokerage services and related technology-based financial services. The Company provides its services to retail investors, traders and independent registered investment advisors (RIAs). The Company provides its services through the Internet, a national branch network and relationships with RIAs. The Company’s products and services include common and preferred stock, exchange-traded funds, options, futures, foreign exchange, mutual funds, fixed income, new and secondary issue securities, margin lending, cash management services and annuities. The Company uses its platform to offer brokerage services to retail investors and investment advisors. In addition, it also offers various products and services to retail clients, such as touch-tone trading, trading over the Internet, real-time quotes, extended trading hours and direct access to market destinations.

PJT Partners Company Profile

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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