Head to Head Review: GCM Grosvenor (GCMG) vs. Its Competitors

GCM Grosvenor (NASDAQ:GCMG) is one of 1,746 publicly-traded companies in the “Capital Markets” industry, but how does it compare to its competitors? We will compare GCM Grosvenor to similar companies based on the strength of its analyst recommendations, valuation, profitability, earnings, institutional ownership, risk and dividends.

Earnings and Valuation

This table compares GCM Grosvenor and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GCM Grosvenor	$591.39 million	$45.37 million	26.79
GCM Grosvenor Competitors	$2.87 billion	$397.40 million	15.81

GCM Grosvenor’s competitors have higher revenue and earnings than GCM Grosvenor. GCM Grosvenor is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares GCM Grosvenor and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GCM Grosvenor	7.95%	106.70%	19.27%
GCM Grosvenor Competitors	314.79%	9.90%	3.46%

Insider & Institutional Ownership

99.9% of GCM Grosvenor shares are held by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are held by institutional investors. 70.7% of GCM Grosvenor shares are held by insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

GCM Grosvenor pays an annual dividend of $0.48 per share and has a dividend yield of 3.4%. GCM Grosvenor pays out 90.6% 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, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.2% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations for GCM Grosvenor and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCM Grosvenor	0	1	4	0	2.80
GCM Grosvenor Competitors	5605	20208	22560	650	2.37

GCM Grosvenor currently has a consensus price target of $15.12, indicating a potential upside of 6.51%. As a group, “Capital Markets” companies have a potential upside of 22.91%. Given GCM Grosvenor’s competitors higher possible upside, analysts clearly believe GCM Grosvenor has less favorable growth aspects than its competitors.

Volatility & Risk

GCM Grosvenor has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, GCM Grosvenor’s competitors have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.

Summary

GCM Grosvenor beats its competitors on 9 of the 15 factors compared.

About GCM Grosvenor

GCM Grosvenor is an alternative asset management firm that provides investment solutions across private markets and hedge fund strategies. Its offerings include private equity, infrastructure, real estate and credit investments, as well as customized portfolios and multi-manager strategies. The firm invests on behalf of institutional investors and other clients through primary investments, co-investments and secondary-market transactions. Its activities span global markets, with offices in North America, Europe and Asia.