Critical Contrast: Diamond Hill Investment Group (DHIL) & Brightsphere Investment Group (BSIG)

Diamond Hill Investment Group (NASDAQ: DHIL) and Brightsphere Investment Group (NYSE:BSIG) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Dividends

Brightsphere Investment Group pays an annual dividend of $0.36 per share and has a dividend yield of 2.5%. Diamond Hill Investment Group does not pay a dividend. Brightsphere Investment Group pays out 22.2% of its earnings in the form of a dividend.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diamond Hill Investment Group $145.20 million 4.70 $49.98 million N/A N/A
Brightsphere Investment Group $887.40 million 1.77 $4.20 million $1.62 8.80

Diamond Hill Investment Group has higher earnings, but lower revenue than Brightsphere Investment Group.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Diamond Hill Investment Group and Brightsphere Investment Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diamond Hill Investment Group 0 0 0 0 N/A
Brightsphere Investment Group 0 1 5 0 2.83

Brightsphere Investment Group has a consensus target price of $20.50, indicating a potential upside of 43.76%. Given Brightsphere Investment Group’s higher probable upside, analysts clearly believe Brightsphere Investment Group is more favorable than Diamond Hill Investment Group.

Insider and Institutional Ownership

60.3% of Diamond Hill Investment Group shares are owned by institutional investors. Comparatively, 1.2% of Brightsphere Investment Group shares are owned by institutional investors. 6.4% of Diamond Hill Investment Group shares are owned by insiders. Comparatively, 0.6% of Brightsphere 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Diamond Hill Investment Group 33.97% 27.95% 19.74%
Brightsphere Investment Group 4.26% 143.17% 13.96%

Summary

Diamond Hill Investment Group beats Brightsphere Investment Group on 7 of the 12 factors compared between the two stocks.

About Diamond Hill Investment Group

Diamond Hill Investment Group, Inc., together with its subsidiaries, provides investment advisory and fund administration services in the United States. It sponsors, distributes, and offers investment advisory and related services to a range of clients, such as corporations, mutual funds, retirement plans, public pension funds, endowments, foundations, financial institutions, and high net worth individuals. The company also provides fund administration services, including portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the mutual fund complex, as well as oversight of back-office service providers, such as the custodian, fund accountant, and transfer agent. It offers investment advisory services to third-party financial intermediaries comprising independent registered investment advisors, brokers, financial planners, and wealth advisers; and fund administration services primarily to mutual funds, institutional accounts, and private investment funds. The company was founded in 1990 and is based in Columbus, Ohio.

About Brightsphere Investment Group

BrightSphere Investment Group plc is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as OM Asset Management plc. BrightSphere Investment Group plc operates as a former subsidiary of Old Mutual Global Investors.

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