Reviewing Moelis & Company (NYSE:MC) and Its Competitors

Moelis & Company (NYSE: MC) is one of 52 public companies in the “Investment advice” industry, but how does it contrast to its peers? We will compare Moelis & Company to similar businesses based on the strength of its institutional ownership, risk, profitability, earnings, valuation, dividends and analyst recommendations.

Dividends

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Moelis & Company pays an annual dividend of $1.88 per share and has a dividend yield of 3.7%. Moelis & Company pays out 82.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Investment advice” companies pay a dividend yield of 3.6% and pay out 47.5% of their earnings in the form of a dividend. Moelis & Company has increased its dividend for 3 consecutive years.

Risk and Volatility

Moelis & Company has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Moelis & Company’s peers have a beta of 1.21, indicating that their average stock price is 21% more volatile than the S&P 500.

Valuation & Earnings

This table compares Moelis & Company and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Moelis & Company $684.61 million $29.40 million 22.05
Moelis & Company Competitors $2.41 billion $267.63 million 14.27

Moelis & Company’s peers have higher revenue and earnings than Moelis & Company. Moelis & Company is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Moelis & Company and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Moelis & Company 4.29% 47.12% 21.75%
Moelis & Company Competitors 12.38% 28.02% 10.28%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Moelis & Company and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moelis & Company 0 1 3 0 2.75
Moelis & Company Competitors 316 1695 2127 113 2.48

Moelis & Company presently has a consensus price target of $50.25, indicating a potential downside of 0.50%. As a group, “Investment advice” companies have a potential upside of 15.80%. Given Moelis & Company’s peers higher possible upside, analysts clearly believe Moelis & Company has less favorable growth aspects than its peers.

Institutional and Insider Ownership

54.8% of Moelis & Company shares are owned by institutional investors. Comparatively, 48.1% of shares of all “Investment advice” companies are owned by institutional investors. 52.6% of Moelis & Company shares are owned by company insiders. Comparatively, 20.9% of shares of all “Investment advice” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Moelis & Company beats its peers on 9 of the 15 factors compared.

About Moelis & Company

Moelis & Company, an investment bank, provides strategic and financial advisory services in the United States and internationally. It advises clients in the areas of mergers and acquisitions, recapitalizations and restructurings, capital markets advisory, and other corporate finance matters. The company offers its services to public multinational corporations, governments, financial sponsors, middle market private companies, and individual entrepreneurs. It has strategic alliances with Sumitomo Mitsui Banking Corporation and SMBC Nikko Securities Inc.; and Alfaro, Dávila y Ríos, S.C. Moelis & Company was founded in 2007 and is headquartered in New York, New York.

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