TPG (NASDAQ:TPG) versus Futu (NASDAQ:FUTU) Financial Survey

Futu (NASDAQ:FUTU) and TPG (NASDAQ:TPG) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Profitability

This table compares Futu and TPG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Futu	42.95%	28.20%	4.40%
TPG	4.67%	28.10%	8.03%

Risk and Volatility

Futu has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, TPG has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500.

Valuation & Earnings

This table compares Futu and TPG”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Futu	$25.90 billion	0.61	$1.46 billion	$10.10	11.21
TPG	$4.67 billion	3.70	$184.59 million	$0.66	68.14

Futu has higher revenue and earnings than TPG. Futu is trading at a lower price-to-earnings ratio than TPG, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Futu and TPG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Futu	0	4	2	0	2.33
TPG	0	5	12	0	2.71

Futu currently has a consensus target price of $139.91, indicating a potential upside of 23.58%. TPG has a consensus target price of $61.87, indicating a potential upside of 37.57%. Given TPG’s stronger consensus rating and higher probable upside, analysts plainly believe TPG is more favorable than Futu.

Insider and Institutional Ownership

94.0% of TPG shares are held by institutional investors. 35.2% of Futu shares are held by insiders. Comparatively, 61.4% of TPG 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.

Dividends

Futu pays an annual dividend of $2.55 per share and has a dividend yield of 2.3%. TPG pays an annual dividend of $2.36 per share and has a dividend yield of 5.2%. Futu pays out 25.2% of its earnings in the form of a dividend. TPG pays out 357.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

TPG beats Futu on 10 of the 16 factors compared between the two stocks.

About Futu

Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin financing and fund distribution services through its Futubull and Moomoo digital platforms. The company also provides financial information and online community services; online wealth management services under the Money Plus brand name through its Futubull and moomoo platforms, which provides its client access to mutual funds, private funds, bonds, structured products, and other wealth management products; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas. Futu Holdings Limited was founded in 2007 and is headquartered in Sheung Wan, Hong Kong.

About TPG

TPG Inc. operates as an alternative asset manager in the United States and internationally. The company offers investment management services to TPG Funds, limited partners, and other vehicles. It also offers monitoring services to portfolio companies; advisory, debt and equity arrangement, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. In addition, the company invests in private equity funds, real estate funds, hedge funds, and credit funds. TPG Inc. was founded in 1992 and is based in Fort Worth, Texas. The company operates as a subsidiary of TPG GP A, LLC.