Head-To-Head Survey: MSCI (NYSE:MSCI) and TPG (NASDAQ:TPG)

MSCI (NYSE:MSCI) and TPG (NASDAQ:TPG) are both large-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSCI	$3.13 billion	13.58	$1.20 billion	$17.51	33.39
TPG	$4.67 billion	3.67	$184.59 million	$0.22	202.82

MSCI has higher earnings, but lower revenue than TPG. MSCI is trading at a lower price-to-earnings ratio than TPG, indicating that it is currently the more affordable of the two stocks.

Dividends

MSCI pays an annual dividend of $8.20 per share and has a dividend yield of 1.4%. TPG pays an annual dividend of $2.44 per share and has a dividend yield of 5.5%. MSCI pays out 46.8% of its earnings in the form of a dividend. TPG pays out 1,109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MSCI has increased its dividend for 11 consecutive years.

Volatility & Risk

MSCI has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, TPG has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Profitability

This table compares MSCI and TPG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MSCI	40.74%	-65.48%	24.49%
TPG	3.81%	28.13%	8.25%

Institutional & Insider Ownership

90.0% of MSCI shares are owned by institutional investors. Comparatively, 94.0% of TPG shares are owned by institutional investors. 3.8% of MSCI shares are owned by insiders. Comparatively, 76.5% of TPG shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for MSCI and TPG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSCI	0	2	8	1	2.91
TPG	0	5	12	0	2.71

MSCI currently has a consensus price target of $692.70, indicating a potential upside of 18.48%. TPG has a consensus price target of $62.88, indicating a potential upside of 40.91%. Given TPG’s higher probable upside, analysts clearly believe TPG is more favorable than MSCI.

About MSCI

MSCI Inc., together with its subsidiaries, provides critical decision support tools and solutions for the investment community to manage investment processes worldwide. The Index segment provides indexes for use in various areas of the investment process, including indexed financial product, such as ETFs, mutual funds, annuities, futures, options, structured products, and over-the-counter derivatives; performance benchmarking; portfolio construction and rebalancing; and asset allocation, as well as licenses GICS and GICS Direct. The Analytics segment offers risk management, performance attribution and portfolio management content, application, an integrated view of risk and return service, and an analysis of market, credit, liquidity, counterparty, and climate risk across asset classes; managed services, including consolidation of client portfolio data, review and reconciliation of input data and results, and customized reporting; and HedgePlatform to measure, evaluate, and monitor the risk of hedge fund investments. The ESG and Climate segment provides products and services that help institutional investors understand how ESG impacts the long-term risk and return of their portfolio and individual security-level investments; and data, ratings, research, and tools to help investors navigate increasing regulation. The All Other Private Assets segment includes real estate and infrastructure data, benchmarks, return-analytics, climate assessments and market insights; business intelligence to real estate owners, managers, developers, and brokers; and offers investment decision support tools for private capital. The Private Capital Solutions segment offers tools to help private asset investors across mission-critical workflows, such as sourcing terms and conditions, evaluating operating performance, managing risk and other activities supporting private capital investing. MSCI Inc. was incorporated in 1998 and is headquartered in New York, New York.

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.