Contrasting UBS Group (NYSE:UBS) and Perella Weinberg Partners (NASDAQ:PWP)

Perella Weinberg Partners (NASDAQ:PWP) and UBS Group (NYSE:UBS) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

41.1% of Perella Weinberg Partners shares are held by institutional investors. 26.1% of Perella Weinberg Partners shares are held by insiders. Comparatively, 1.0% of UBS Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Perella Weinberg Partners and UBS Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perella Weinberg Partners	$750.90 million	1.73	$35.48 million	$0.26	53.12
UBS Group	$76.12 billion	1.99	$7.77 billion	$2.94	16.48

UBS Group has higher revenue and earnings than Perella Weinberg Partners. UBS Group is trading at a lower price-to-earnings ratio than Perella Weinberg Partners, indicating that it is currently the more affordable of the two stocks.

Dividends

Perella Weinberg Partners pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. UBS Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. Perella Weinberg Partners pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UBS Group pays out 12.2% of its earnings in the form of a dividend. UBS Group has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of current ratings for Perella Weinberg Partners and UBS Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perella Weinberg Partners	1	1	2	0	2.25
UBS Group	2	5	4	0	2.18

Perella Weinberg Partners presently has a consensus target price of $22.00, suggesting a potential upside of 59.30%. UBS Group has a consensus target price of $60.30, suggesting a potential upside of 24.45%. Given Perella Weinberg Partners’ stronger consensus rating and higher possible upside, research analysts plainly believe Perella Weinberg Partners is more favorable than UBS Group.

Profitability

This table compares Perella Weinberg Partners and UBS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perella Weinberg Partners	3.19%	-35.84%	8.40%
UBS Group	13.10%	10.50%	0.57%

Risk & Volatility

Perella Weinberg Partners has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, UBS Group has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Summary

UBS Group beats Perella Weinberg Partners on 9 of the 17 factors compared between the two stocks.

About Perella Weinberg Partners

Perella Weinberg Partners, an independent investment banking company, provides strategic and financial advice services in the United States and internationally. The company offers advisory services related to strategic and financial decisions, mergers and acquisition execution, shareholder and defense advisory, and financing and capital solutions advice with resources focused on restructuring, liability management, and capital markets advisory, as well as underwriting and research services primarily for the energy and related industries. It serves public multinational corporations, mid-sized public and private companies, financial sponsors, individual entrepreneurs, private and institutional investors, creditor committees, and government institutions in consumer and retail; energy and energy transition; financial services and FinTech; healthcare; industrials and infrastructure; and technology, telecommunication, and media industries. Perella Weinberg Partners is headquartered in New York, New York.

About UBS Group

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. It also provides personal banking products and services, such as deposits, credit and debit cards, and online and mobile banking, as well as lending, investments, retirement, and wealth management services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, and transaction banking solutions for payment and cash management services, trade and export finance, and global custody solutions. In addition, the company offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. Further, it advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; distributes, trades in, finances, and clears cash equities and equity-linked products; structures, originates, and distributes new equity and equity-linked issues; and originates, distributes, manages risk, and provides liquidity in foreign exchange, rates, credit and precious metals. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.