Critical Comparison: U.S. Global Investors (GROW) & Blackstone Group (BX)

U.S. Global Investors (NASDAQ:GROW) and Blackstone Group (NYSE:BX) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Earnings & Valuation

This table compares U.S. Global Investors and Blackstone Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
U.S. Global Investors $6.26 million 3.43 $640,000.00 N/A N/A
Blackstone Group $7.12 billion 3.11 $1.47 billion $2.81 11.81

Blackstone Group has higher revenue and earnings than U.S. Global Investors.

Profitability

This table compares U.S. Global Investors and Blackstone Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
U.S. Global Investors 10.33% 1.97% 1.80%
Blackstone Group 22.34% 22.99% 10.27%

Dividends

U.S. Global Investors pays an annual dividend of $0.03 per share and has a dividend yield of 2.1%. Blackstone Group pays an annual dividend of $2.56 per share and has a dividend yield of 7.7%. Blackstone Group pays out 91.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blackstone Group has raised its dividend for 5 consecutive years. Blackstone Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

23.4% of U.S. Global Investors shares are owned by institutional investors. Comparatively, 49.0% of Blackstone Group shares are owned by institutional investors. 1.0% of Blackstone Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

U.S. Global Investors has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Blackstone Group has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for U.S. Global Investors and Blackstone Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Global Investors 0 0 0 0 N/A
Blackstone Group 0 1 10 0 2.91

Blackstone Group has a consensus target price of $44.85, suggesting a potential upside of 35.09%. Given Blackstone Group’s higher possible upside, analysts plainly believe Blackstone Group is more favorable than U.S. Global Investors.

Summary

Blackstone Group beats U.S. Global Investors on 12 of the 15 factors compared between the two stocks.

About U.S. Global Investors

U.S. Global Investors, Inc. is a publicly owned investment manager. The firm primarily provides its services to investment companies. It also provides its services to pooled investment vehicles. The firm manages equity and fixed income mutual funds for its clients. It also manages hedge funds. The firm also manages exchange traded funds. It invests in the public equity and fixed income markets across the globe. It invests in G.A.R.P. and value stocks to make its equity investments. The firm employs a fundamental and quantitative analysis with top-down and bottom-up stock picking approach to make its investments. U.S. Global Investors, Inc. was founded in 1968 and is based in San Antonio, Texas.

About Blackstone Group

The Blackstone Group L.P. is a publicly owned hedge fund sponsor. The firm also provides financial advisory services to its clients. It provides its services to public and corporate pension funds, academic, cultural, and charitable organizations, retirees, sovereign wealth funds, and institutional and individual investors. The firm manages separate client focused portfolios for its clients. It launches fixed income mutual funds. The firm also launches and manages private equity funds, real estate funds, funds of hedge funds, and credit-focused funds for its clients. It invests in private equity, public equity, fixed income, and alternative investment markets. The Blackstone Group L.P. was founded in 1985 and is based in New York City with additional offices in San Francisco, California, London, United Kingdom, Hong Kong, Beijing, China, Dubai, UAE, Dusseldorf, Germany, Los Angeles, Santa Monica, Mexico City, Mexico, Paris, France, Sao Paulo, Brazil, Seoul, Korea, Shanghai, China, Singapore, Sydney, Australia, Copenhagen, Denmark, Toronto, Canada, Baltimore, Maryland, and Tokyo, Japan.

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