The Blackstone Group L.P. (BX) and its Rivals Financial Review

The Blackstone Group L.P. (NYSE: BX) is one of 56 public companies in the “Investment Management” industry, but how does it compare to its competitors? We will compare The Blackstone Group L.P. to related companies based off the strength of its dividends, analyst recommendations, valuation, profitability, risk, earnings and institutional ownership.

Institutional and Insider Ownership

46.6% of The Blackstone Group L.P. shares are owned by institutional investors. Comparatively, 52.0% of shares of all “Investment Management” companies are owned by institutional investors. 1.0% of The Blackstone Group L.P. shares are owned by insiders. Comparatively, 26.7% of shares of all “Investment Management” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for The Blackstone Group L.P. and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Blackstone Group L.P. 0 1 8 0 2.89
The Blackstone Group L.P. Competitors 661 2024 1951 37 2.29

The Blackstone Group L.P. currently has a consensus target price of $37.78, indicating a potential upside of 19.51%. All “Investment Management” companies have a potential upside of 0.50%. Given The Blackstone Group L.P.’s stronger consensus rating and higher possible upside, equities analysts clearly believe The Blackstone Group L.P. is more favorable than its competitors.

Risk and Volatility

The Blackstone Group L.P. has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, The Blackstone Group L.P.’s competitors have a beta of 1.41, suggesting that their average stock price is 41% more volatile than the S&P 500.

Valuation and Earnings

This table compares The Blackstone Group L.P. and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
The Blackstone Group L.P. $6.33 billion N/A 14.24
The Blackstone Group L.P. Competitors $862.41 million $243.32 million -7.90

The Blackstone Group L.P. has higher revenue, but lower earnings than its competitors. The Blackstone Group L.P. is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently the more expensive than other companies in its industry.

Profitability

This table compares The Blackstone Group L.P. and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Blackstone Group L.P. 22.88% 18.97% 8.76%
The Blackstone Group L.P. Competitors 29.67% 112.34% 29.59%

Dividends

The Blackstone Group L.P. pays an annual dividend of $2.16 per share and has a dividend yield of 6.8%. The Blackstone Group L.P. pays out 97.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Investment Management” companies pay a dividend yield of 3.8% and pay out 66.2% of their earnings in the form of a dividend. The Blackstone Group L.P. has increased its dividend for 4 consecutive years.

Summary

The Blackstone Group L.P. competitors beat The Blackstone Group L.P. on 8 of the 14 factors compared.

About The Blackstone Group L.P.

The Blackstone Group L.P. is a global alternative asset manager. The Company’s alternative asset management businesses include investment vehicles focused on private equity, non-investment grade credit, secondary private equity funds of funds and multi-asset class strategies. It operates through four segments: Private Equity, Real Estate, Hedge Fund Solutions and Credit. The Private Equity segment includes its corporate private equity business, which consists of its corporate private equity funds, Blackstone Capital Partners (BCP) funds, its sector-focused corporate private equity funds, including its energy-focused funds, Blackstone Energy Partners (BEP) funds and its core private equity fund. The Blackstone Real Estate Partners funds target a range of opportunistic real estate and real estate related investments. The Hedge Fund Solutions segment consists of Blackstone Alternative Asset Management (BAAM). The Credit segment consists principally of GSO Capital Partners LP (GSO).

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