Analyzing Silvercrest Asset Management Group (SAMG) & Fidus Investment (FDUS)

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Silvercrest Asset Management Group (NASDAQ:SAMG) and Fidus Investment (NASDAQ:FDUS) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Silvercrest Asset Management Group and Fidus Investment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silvercrest Asset Management Group 0 0 1 0 3.00
Fidus Investment 0 1 1 0 2.50

Silvercrest Asset Management Group currently has a consensus price target of $20.00, indicating a potential upside of 39.08%. Fidus Investment has a consensus price target of $16.00, indicating a potential upside of 15.77%. Given Silvercrest Asset Management Group’s stronger consensus rating and higher possible upside, analysts clearly believe Silvercrest Asset Management Group is more favorable than Fidus Investment.

Risk & Volatility

Silvercrest Asset Management Group has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Fidus Investment has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Valuation and Earnings

This table compares Silvercrest Asset Management Group and Fidus Investment’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Silvercrest Asset Management Group $91.36 million 2.08 $5.33 million N/A N/A
Fidus Investment $68.61 million 4.93 $43.95 million $1.43 9.66

Fidus Investment has lower revenue, but higher earnings than Silvercrest Asset Management Group.

Profitability

This table compares Silvercrest Asset Management Group and Fidus Investment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Silvercrest Asset Management Group 6.61% 18.35% 12.30%
Fidus Investment 65.95% 8.73% 5.28%

Dividends

Silvercrest Asset Management Group pays an annual dividend of $0.56 per share and has a dividend yield of 3.9%. Fidus Investment pays an annual dividend of $1.56 per share and has a dividend yield of 11.3%. Fidus Investment pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fidus Investment has raised its dividend for 3 consecutive years. Fidus Investment is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

49.8% of Silvercrest Asset Management Group shares are held by institutional investors. Comparatively, 28.5% of Fidus Investment shares are held by institutional investors. 10.2% of Silvercrest Asset Management Group shares are held by insiders. Comparatively, 1.3% of Fidus Investment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Silvercrest Asset Management Group beats Fidus Investment on 9 of the 15 factors compared between the two stocks.

Silvercrest Asset Management Group Company Profile

Silvercrest Asset Management Group Inc., a wealth management firm, provides financial advisory and related family office services in the United States. The company serves ultra-high net worth individuals and families, as well as their trusts; endowments; foundations; and other institutional investors. It also manages funds of funds and other investment funds. The company was founded in 2002 and is headquartered in New York, New York.

Fidus Investment Company Profile

Fidus Investment Corporation is a business development company specializing in leveraged buyouts, refinancings, change of ownership transactions, recapitalizations, strategic acquisitions, mezzanine, growth capital, business expansion, lower middle market investments, debt investments, subordinated and second lien loans, senior secured and unitranche debt, preferred equity, warrants, subordinated debt, senior subordinated notes, junior secured loans, and unitranche loans. It does not invest in turnarounds or distressed situations. The fund prefers to invest in aerospace and defense, business services, consumer products and services including retail, food, and beverage, healthcare products and services, industrial products and services, information technology services, niche manufacturing, transportation and logistics, and value-added distribution sectors. It seeks to invest in companies based in United States. The fund typically invests between $5 million and $15 million per transaction in companies with annual revenues between $10 million and $150 million and an annual EBITDA between $3 million and $20 million, but it can occasionally invest in larger or smaller companies. It seeks to acquire minority equity stakes and board observation rights in conjunction with its investments.

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