Fifth Street Asset Management (OTCMKTS:FSAM) versus TPG (NASDAQ:TPG) Critical Contrast

TPG (NASDAQ:TPG) and Fifth Street Asset Management (OTCMKTS:FSAM) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Insider and Institutional Ownership

86.8% of TPG shares are held by institutional investors. 76.5% of TPG shares are held by company insiders. Comparatively, 85.4% of Fifth Street Asset Management shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

TPG pays an annual dividend of $1.68 per share and has a dividend yield of 2.5%. Fifth Street Asset Management pays an annual dividend of $0.14 per share and has a dividend yield of 992.9%. TPG pays out -1,200.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for TPG and Fifth Street Asset Management, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG	0	7	6	0	2.46
Fifth Street Asset Management	0	0	0	0	N/A

TPG presently has a consensus target price of $52.25, suggesting a potential downside of 21.99%. Given TPG’s higher probable upside, equities research analysts plainly believe TPG is more favorable than Fifth Street Asset Management.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TPG	1.08%	24.27%	8.58%
Fifth Street Asset Management	N/A	N/A	N/A

Valuation and Earnings

This table compares TPG and Fifth Street Asset Management”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG	$2.14 billion	11.41	$80.09 million	($0.14)	-478.43
Fifth Street Asset Management	N/A	N/A	N/A	N/A	N/A

TPG has higher revenue and earnings than Fifth Street Asset Management.

Volatility & Risk

TPG has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Fifth Street Asset Management has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Summary

TPG beats Fifth Street Asset Management on 9 of the 11 factors compared between the two stocks.

About TPG

TPG Inc. operates as an alternative asset manager in the United States and internationally. The company offers investment management services to TPG Funds, limited partners, and other vehicles. It also offers monitoring services to portfolio companies; advisory, debt and equity arrangement, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. In addition, the company invests in private equity funds, real estate funds, hedge funds, and credit funds. TPG Inc. was founded in 1992 and is based in Fort Worth, Texas. The company operates as a subsidiary of TPG GP A, LLC.

About Fifth Street Asset Management

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.