Head to Head Contrast: Financial Engines (FNGN) vs. PJT Partners (PJT)

Financial Engines (NASDAQ: FNGN) and PJT Partners (NYSE:PJT) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Insider and Institutional Ownership

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59.0% of PJT Partners shares are held by institutional investors. 9.3% of Financial Engines shares are held by insiders. Comparatively, 8.0% of PJT Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Financial Engines has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, PJT Partners has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Financial Engines and PJT Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Financial Engines 1 1 5 0 2.57
PJT Partners 0 1 3 0 2.75

Financial Engines currently has a consensus price target of $36.33, suggesting a potential upside of 10.27%. PJT Partners has a consensus price target of $49.00, suggesting a potential downside of 7.63%. Given Financial Engines’ higher probable upside, equities analysts plainly believe Financial Engines is more favorable than PJT Partners.

Dividends

Financial Engines pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. PJT Partners pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. Financial Engines pays out 31.1% of its earnings in the form of a dividend. PJT Partners pays out 13.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares Financial Engines and PJT Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Financial Engines $480.51 million 4.32 $46.66 million $1.03 31.99
PJT Partners $499.28 million 2.00 -$28.32 million $1.54 34.45

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

Profitability

This table compares Financial Engines and PJT Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Financial Engines 9.71% 8.07% 7.41%
PJT Partners -6.52% 319.40% 10.82%

About Financial Engines

Financial Engines, Inc. provides independent technology-enabled financial advisory, discretionary portfolio management, personalized investment advice, financial and retirement income planning, and financial education and guidance services in the United States. It assists individuals to develop a strategy to reach financial goals by offering a set of services, including personalized plans for saving and investing, assessments of retirement income, and the option to meet face-to-face with a financial advisor. The company's products and services include Professional Management that provides discretionary portfolio management service for individuals in the workplace who want affordable and personalized portfolio management for their retirement accounts; Personal Advisor, which offers discretionary portfolio management for 401(k), IRA, and taxable accounts for defined contribution (DC) plan participants and individual retail investors; and Online Advice, an Internet-based investment advisory service designed for individuals who wish to take an active role in personally managing their portfolios. Its products and services also comprise Financial Planning and Retirement Income Planning services, including social security guidance; and Financial Wellness, which offers a range of financial education and guidance through multiple channels, including in person, on-site events, online content, and phone-based advisors. The company delivers its services to plan sponsors and plan participants primarily through connections to nine DC plan providers. Financial Engines, Inc. was founded in 1996 and is headquartered in Sunnyvale, California.

About PJT Partners

PJT Partners Inc. provides various strategic advisory, restructuring and special situations, and private fund advisory and placement services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers a range of financial advisory and transaction execution capability, including mergers and acquisitions, joint ventures, minority investments, asset swaps, divestitures, takeover defenses, corporate finance advisory, private placements, and distressed sales. The company also advices companies, creditors, and financial sponsors on recapitalizations, reorganizations, exchange offers, debt repurchases, capital raises, and distressed mergers and acquisitions. In addition, it offers private fund advisory and placement services for a range of investment strategies, including private equity, hedge fund, real estate, and secondary advisory. The company was formerly known as Blackstone Advisory Inc. and changed its name to PJT Partners Inc. in March 2015. PJT Partners Inc. was incorporated in 2014 and is headquartered in New York, New York.

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