Head to Head Contrast: Patria Investments (NYSE:PAX) & Diamond Hill Investment Group (NASDAQ:DHIL)

Patria Investments (NYSE:PAX) and Diamond Hill Investment Group (NASDAQ:DHIL) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Patria Investments and Diamond Hill Investment Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Patria Investments	0	0	0	0	N/A
Diamond Hill Investment Group	0	0	0	0	N/A

Patria Investments currently has a consensus target price of $17.00, indicating a potential upside of 25.00%. Given Patria Investments’ higher probable upside, equities research analysts plainly believe Patria Investments is more favorable than Diamond Hill Investment Group.

Dividends

Patria Investments pays an annual dividend of $1.59 per share and has a dividend yield of 11.7%. Diamond Hill Investment Group pays an annual dividend of $6.00 per share and has a dividend yield of 4.0%. Patria Investments pays out 196.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diamond Hill Investment Group pays out 41.8% of its earnings in the form of a dividend. Patria Investments has raised its dividend for 1 consecutive years. Patria Investments is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Patria Investments has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Diamond Hill Investment Group has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Earnings & Valuation

This table compares Patria Investments and Diamond Hill Investment Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Patria Investments	$307.16 million	2.40	$118.40 million	$0.81	16.79
Diamond Hill Investment Group	$136.72 million	3.12	$42.23 million	$14.34	10.48

Patria Investments has higher revenue and earnings than Diamond Hill Investment Group. Diamond Hill Investment Group is trading at a lower price-to-earnings ratio than Patria Investments, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Patria Investments and Diamond Hill Investment Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Patria Investments	36.81%	38.20%	19.57%
Diamond Hill Investment Group	30.89%	18.46%	12.61%

Insider & Institutional Ownership

96.3% of Patria Investments shares are owned by institutional investors. Comparatively, 65.5% of Diamond Hill Investment Group shares are owned by institutional investors. 58.1% of Patria Investments shares are owned by insiders. Comparatively, 4.8% of Diamond Hill Investment Group shares are owned 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.

Summary

Patria Investments beats Diamond Hill Investment Group on 11 of the 15 factors compared between the two stocks.

About Patria Investments

Patria Investments Limited operates as a private market investment firm focused on investing in Latin America. The company offers asset management services to investors focusing on private equity funds, infrastructure development funds, co-investments funds, constructivist equity funds, and real estate and credit funds. Patria Investments Limited was founded in 1994 and is headquartered in Grand Cayman, the Cayman Islands.

About Diamond Hill Investment Group

Diamond Hill Investment Group, Inc., through its subsidiary, Diamond Hill Capital Management, Inc., provides investment advisory and fund administration services in the United States. It offers investment advisory and related services to clients through pooled vehicles, such as private fund; separately managed accounts; collective investment trusts; and other pooled vehicles, including sub-advised funds and model delivery programs. The company also provides fund administration services comprising portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the funds, as well as oversight of back-office service providers, which include the custodian, fund accountant, and transfer agent. Diamond Hill Investment Group, Inc. was incorporated in 1990 and is based in Columbus, Ohio.