Analyzing The Blackstone Group L.P. (BX) and Its Peers

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

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
The Blackstone Group L.P. $6.33 billion N/A 14.50
The Blackstone Group L.P. Competitors $858.39 million $242.16 million -7.93

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

Insider & Institutional Ownership

46.6% of The Blackstone Group L.P. shares are held by institutional investors. Comparatively, 52.0% of shares of all “Investment Management” companies are held by institutional investors. 1.0% of The Blackstone Group L.P. shares are held by insiders. Comparatively, 26.7% of shares of all “Investment Management” companies are held 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.

Analyst Ratings

This is a summary of recent ratings for The Blackstone Group L.P. and its rivals, as provided by MarketBeat.

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 2030 1954 37 2.29

The Blackstone Group L.P. currently has a consensus target price of $37.78, indicating a potential upside of 17.32%. As a group, “Investment Management” companies have a potential downside of 1.40%. Given The Blackstone Group L.P.’s stronger consensus rating and higher probable upside, analysts plainly believe The Blackstone Group L.P. is more favorable than its rivals.

Volatility and Risk

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

Profitability

This table compares The Blackstone Group L.P. and its rivals’ 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 29.61% 111.94% 29.49%

Dividends

The Blackstone Group L.P. pays an annual dividend of $2.16 per share and has a dividend yield of 6.7%. 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 3.7% 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. rivals beat The Blackstone Group L.P. on 8 of the 14 factors compared.

The Blackstone Group L.P. Company Profile

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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