SEI Investments (NASDAQ: SEIC) and Och-Ziff Capital Management Group (NYSE:OZM) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.
Volatility and Risk
SEI Investments has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Och-Ziff Capital Management Group has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.
Dividends
SEI Investments pays an annual dividend of $0.56 per share and has a dividend yield of 1.0%. Och-Ziff Capital Management Group pays an annual dividend of $0.08 per share and has a dividend yield of 2.7%. SEI Investments pays out 25.5% of its earnings in the form of a dividend. Och-Ziff Capital Management Group pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SEI Investments has raised its dividend for 7 consecutive years.
Analyst Ratings
This is a breakdown of current ratings and price targets for SEI Investments and Och-Ziff Capital Management Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SEI Investments | 0 | 2 | 2 | 0 | 2.50 |
| Och-Ziff Capital Management Group | 0 | 6 | 1 | 0 | 2.14 |
SEI Investments presently has a consensus target price of $59.33, indicating a potential upside of 6.50%. Och-Ziff Capital Management Group has a consensus target price of $3.50, indicating a potential upside of 19.45%. Given Och-Ziff Capital Management Group’s higher probable upside, analysts clearly believe Och-Ziff Capital Management Group is more favorable than SEI Investments.
Earnings and Valuation
This table compares SEI Investments and Och-Ziff Capital Management Group’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| SEI Investments | $1.46 billion | 6.03 | $413.26 million | $2.20 | 25.32 |
| Och-Ziff Capital Management Group | $716.20 million | 0.76 | $108.03 million | $0.10 | 29.30 |
SEI Investments has higher revenue and earnings than Och-Ziff Capital Management Group. SEI Investments is trading at a lower price-to-earnings ratio than Och-Ziff Capital Management Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SEI Investments and Och-Ziff Capital Management Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SEI Investments | 24.44% | 26.60% | 22.00% |
| Och-Ziff Capital Management Group | 4.46% | -55.73% | 10.42% |
Institutional and Insider Ownership
70.1% of SEI Investments shares are owned by institutional investors. Comparatively, 53.6% of Och-Ziff Capital Management Group shares are owned by institutional investors. 17.1% of SEI Investments shares are owned by insiders. Comparatively, 60.3% of Och-Ziff Capital Management Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
SEI Investments beats Och-Ziff Capital Management Group on 14 of the 17 factors compared between the two stocks.
About SEI Investments
SEI Investments Company provides investment processing, investment management and investment operations solutions. The Company provides its solutions to financial institutions, financial advisors, institutional investors, investment managers and ultra-high-net-worth families in the United States, Canada, the United Kingdom, continental Europe and various other locations around the world. The Company’s segments are Private Banks, Investment Advisors, Institutional Investors, Investment Managers and Investments in New Businesses. The Company’s investment management business solutions include investment processing outsourcing solutions for providers of institutional and private-client wealth management services, including banks, trust companies, independent wealth advisors and other financial services firms, and investment management solutions for institutional investors, including retirement plan sponsors, not-for-profit organizations and individual investors.
About Och-Ziff Capital Management Group
Och-Ziff Capital Management Group LLC (Och-Ziff) is an institutional alternative asset manager. The Company provides asset management services through its funds, which pursue a range of global investment opportunities. The Company operates through two segments: the Och-Ziff Funds and real estate business. The Och-Ziff Funds segment provides asset management services to its multi-strategy funds, credit funds and other alternative investment vehicles. The real estate business segment provides asset management services to its real estate funds and is included within Other Operations. The Company offers customized solutions within and across its product platforms to help its fund investors meet their investment objectives. The Company’s global multi-strategy fund, The OZ Master Fund, allocates capital between its investment strategies in North America, Europe and Asia based on market conditions and investment opportunities.
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