Janus Capital Group (NYSE: JNS) and Noah Holdings (NYSE:NOAH) are both financials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Profitability

This table compares Janus Capital Group and Noah Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Janus Capital Group 12.54% 7.26% 4.48%
Noah Holdings 29.39% 18.42% 11.94%

Earnings & Valuation

This table compares Janus Capital Group and Noah Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Janus Capital Group N/A N/A N/A $0.79 17.94
Noah Holdings $400.55 million 4.16 $120.04 million $1.73 17.08

Noah Holdings has higher revenue and earnings than Janus Capital Group. Noah Holdings is trading at a lower price-to-earnings ratio than Janus Capital Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

90.2% of Janus Capital Group shares are held by institutional investors. Comparatively, 41.6% of Noah Holdings shares are held by institutional investors. 2.1% of Janus Capital Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Janus Capital Group and Noah Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Janus Capital Group 1 6 0 0 1.86
Noah Holdings 0 0 1 0 3.00

Janus Capital Group presently has a consensus price target of $14.20, indicating a potential upside of 0.21%. Noah Holdings has a consensus price target of $29.00, indicating a potential downside of 1.86%. Given Janus Capital Group’s higher possible upside, analysts clearly believe Janus Capital Group is more favorable than Noah Holdings.

Dividends

Janus Capital Group pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. Noah Holdings does not pay a dividend. Janus Capital Group pays out 55.7% of its earnings in the form of a dividend. Janus Capital Group has increased its dividend for 6 consecutive years.

Volatility & Risk

Janus Capital Group has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, Noah Holdings has a beta of 2.37, suggesting that its share price is 137% more volatile than the S&P 500.

Summary

Noah Holdings beats Janus Capital Group on 9 of the 14 factors compared between the two stocks.

About Janus Capital Group

Janus Capital Group Inc. provides investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, separate accounts, other pooled investment vehicles, exchange-traded products (ETPs) and subadvised relationships (collectively referred to as investment products) in both domestic and international markets. The Company operates through investment management business segment. The Company provides investment management solutions across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives. As of December 31, 2016, the Company’s investment products were distributed through three primary channels: intermediary, institutional and self-directed. Each distribution channel focuses on specific investor groups and the requirements of each group.

About Noah Holdings

Noah Holdings Limited is a wealth management service provider with a focus on global wealth investment and asset allocation services for high net worth individuals and enterprises in China. The Company operates through three segments: wealth management, asset management and Internet finance. It also provides Internet finance services to clients in China. It provides direct access to China’s high net worth population. With approximately 1,100 relationship managers in over 130 branch offices, its coverage network includes China’s regions where high net worth population is concentrated, including the Yangtze River Delta, the Pearl River Delta, the Bohai Rim and other regions. Its product offerings consist primarily of over-the-counter (OTC) wealth management and OTC asset management products, mutual fund products and asset management plans originated in China and designed to cater to the needs of China’s high net worth population.

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