Analyzing Silvercrest Asset Management Group (NASDAQ:SAMG) & Eagle Point Credit (NYSE:ECC)

Silvercrest Asset Management Group (NASDAQ:SAMG) and Eagle Point Credit (NYSE:ECC) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Volatility & Risk

Silvercrest Asset Management Group has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Eagle Point Credit has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Valuation and Earnings

This table compares Silvercrest Asset Management Group and Eagle Point Credit”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silvercrest Asset Management Group	$125.32 million	1.04	$4.89 million	$0.12	91.83
Eagle Point Credit	$203.99 million	1.38	-$115.00 million	$0.61	3.48

Silvercrest Asset Management Group has higher earnings, but lower revenue than Eagle Point Credit. Eagle Point Credit is trading at a lower price-to-earnings ratio than Silvercrest Asset Management Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

47.6% of Silvercrest Asset Management Group shares are owned by institutional investors. Comparatively, 19.5% of Eagle Point Credit shares are owned by institutional investors. 21.7% of Silvercrest Asset Management Group shares are owned by company insiders. Comparatively, 0.3% of Eagle Point Credit shares are owned 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.

Profitability

This table compares Silvercrest Asset Management Group and Eagle Point Credit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silvercrest Asset Management Group	0.74%	8.55%	4.67%
Eagle Point Credit	-84.29%	-1.83%	-0.99%

Dividends

Silvercrest Asset Management Group pays an annual dividend of $0.84 per share and has a dividend yield of 7.6%. Eagle Point Credit pays an annual dividend of $1.04 per share and has a dividend yield of 48.9%. Silvercrest Asset Management Group pays out 700.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eagle Point Credit pays out 170.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Silvercrest Asset Management Group has increased its dividend for 1 consecutive years. Eagle Point Credit is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for Silvercrest Asset Management Group and Eagle Point Credit, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silvercrest Asset Management Group	1	1	0	0	1.50
Eagle Point Credit	0	2	2	0	2.50

Eagle Point Credit has a consensus price target of $3.75, indicating a potential upside of 76.47%. Given Eagle Point Credit’s stronger consensus rating and higher possible upside, analysts clearly believe Eagle Point Credit is more favorable than Silvercrest Asset Management Group.

Summary

Silvercrest Asset Management Group beats Eagle Point Credit on 9 of the 17 factors compared between the two stocks.

About Silvercrest Asset Management Group

Silvercrest Asset Management Group, Inc. is an investment advisory and wealth management firm serving high-net-worth individuals, families, family offices, institutions, and charitable organizations. The company provides customized investment management and financial planning services designed to address clients’ long-term wealth objectives. Its services include portfolio management, asset allocation, manager selection, wealth planning, family office support, and advice related to trusts, estates, and other complex financial matters.

About Eagle Point Credit

Eagle Point Credit Company is a publicly traded, externally managed investment company focused primarily on investments in collateralized loan obligations (CLOs). Its portfolio may include CLO equity and debt securities, as well as other investments related to CLOs and structured credit. CLOs are investment vehicles that pool loans, often loans to businesses, and issue securities with different levels of risk and payment priority. Eagle Point’s strategy centers on these securities, with exposure principally to CLOs backed by corporate loans in the United States and, where applicable, other markets.