AssetMark Financial (NYSE:AMK – Get Rating) and Grosvenor Capital Management (NASDAQ:GCMG – Get Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.
Volatility and Risk
AssetMark Financial has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Grosvenor Capital Management has a beta of 0.04, indicating that its share price is 96% less volatile than the S&P 500.
This table compares AssetMark Financial and Grosvenor Capital Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Grosvenor Capital Management||4.04%||-187.86%||20.71%|
This is a summary of recent ratings and price targets for AssetMark Financial and Grosvenor Capital Management, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Grosvenor Capital Management||0||1||3||0||2.75|
AssetMark Financial currently has a consensus price target of $36.00, indicating a potential upside of 77.78%. Grosvenor Capital Management has a consensus price target of $12.33, indicating a potential upside of 37.34%. Given AssetMark Financial’s stronger consensus rating and higher possible upside, equities research analysts plainly believe AssetMark Financial is more favorable than Grosvenor Capital Management.
Institutional and Insider Ownership
26.5% of AssetMark Financial shares are held by institutional investors. Comparatively, 22.2% of Grosvenor Capital Management shares are held by institutional investors. 5.3% of AssetMark Financial shares are held by insiders. Comparatively, 77.3% of Grosvenor Capital Management shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares AssetMark Financial and Grosvenor Capital Management’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AssetMark Financial||$530.30 million||2.81||$25.67 million||$0.35||57.86|
|Grosvenor Capital Management||$531.59 million||3.18||$21.48 million||$0.25||35.92|
AssetMark Financial has higher earnings, but lower revenue than Grosvenor Capital Management. Grosvenor Capital Management is trading at a lower price-to-earnings ratio than AssetMark Financial, indicating that it is currently the more affordable of the two stocks.
AssetMark Financial beats Grosvenor Capital Management on 10 of the 15 factors compared between the two stocks.
About AssetMark Financial (Get Rating)
AssetMark Financial Holdings, Inc. provides wealth management and technology solutions in the United States. It offers an open-architecture product platform, as well as client advice, asset allocation options, practice management, support services, and technology to the financial adviser channel. The company provides integrated technology platform for advisers for accessing a range of automated processes, including new account opening, portfolio construction, streamlined financial planning, customer billing, investor reporting, progress to goal analysis, and client activity tracking; advisory services; and curated investment platform. It also offers SaaS-based financial planning, wellness, and client digital engagement solutions. The company also offers mutual funds; custodial recordkeeping services primarily to investor clients of registered investment advisers; and wealth management services for individual investors. It serves independent advisers who provide wealth management advice to the U.S. investors and advisers. The company was founded in 1996 and is headquartered in Concord, California. AssetMark Financial Holdings, Inc. is a subsidiary of Huatai International Investment Holdings Limited.
About Grosvenor Capital Management (Get Rating)
Grosvenor Capital Management, L.P. is global alternative asset management solutions provider. The firm primarily provides its services to pooled investment vehicles. It also provides its services to investment companies, high net worth individuals, pension and profit sharing plans and state or municipal government entities. The firm invests in equity and alternative investment markets of the United States and internationally. The firm invests in multi-strategy, credit-focused, equity-focused, macro-focused, commodity-focused, and other specialty portfolios. It focuses in hedge fund asset classes, private equity, real estate, and/or infrastructure, credit and absolute return strategies. It also focuses in primary fund investments, secondary fund investments, and co-investments with a focus on buyout, distressed debt, mezzanine, venture capital/growth equity investments. The firm seeks to make regionally-focused investments in middle-market buyout. It prefers to invest in aerospace and defense, advanced electronics, information technology, biosciences, and advanced materials. It focuses on Ohio and the Midwest region. The firm employs fundamental and quantitative analysis. Grosvenor Capital Management, L.P. was founded in 1971 and is based in Chicago, Illinois with additional offices in North America, Asia and Europe.
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