Sculptor Capital Management (NYSE:SCU) and Legg Mason (NYSE:LM) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
Institutional & Insider Ownership
19.9% of Sculptor Capital Management shares are owned by institutional investors. Comparatively, 86.5% of Legg Mason shares are owned by institutional investors. 60.6% of Sculptor Capital Management shares are owned by company insiders. Comparatively, 8.1% of Legg Mason shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Sculptor Capital Management and Legg Mason, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sculptor Capital Management||0||0||0||0||N/A|
Legg Mason has a consensus target price of $34.11, indicating a potential downside of 12.85%. Given Legg Mason’s higher probable upside, analysts clearly believe Legg Mason is more favorable than Sculptor Capital Management.
Volatility & Risk
Sculptor Capital Management has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Legg Mason has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.
Valuation & Earnings
This table compares Sculptor Capital Management and Legg Mason’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sculptor Capital Management||$507.22 million||2.10||-$24.28 million||$1.17||18.19|
|Legg Mason||$2.90 billion||1.17||-$28.51 million||$3.04||12.88|
Sculptor Capital Management has higher earnings, but lower revenue than Legg Mason. Legg Mason is trading at a lower price-to-earnings ratio than Sculptor Capital Management, indicating that it is currently the more affordable of the two stocks.
This table compares Sculptor Capital Management and Legg Mason’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sculptor Capital Management||-8.39%||87.04%||6.75%|
Sculptor Capital Management pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. Legg Mason pays an annual dividend of $1.60 per share and has a dividend yield of 4.1%. Sculptor Capital Management pays out 10.3% of its earnings in the form of a dividend. Legg Mason pays out 52.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Legg Mason beats Sculptor Capital Management on 8 of the 15 factors compared between the two stocks.
About Sculptor Capital Management
Sculptor Capital Management, Inc. is a publicly owned hedge fund sponsor. The firm provides investment advisory services to its clients. It primarily caters to institutional investors, which include pension funds, fund-of-funds, foundations and endowments, corporations and other institutions, private banks and family offices. The firm also manages separate client-focused equity, fixed income, and real estate separate accounts. It also manages commingled funds and specialized products. The firm invests in equity, fixed income and real estate markets across the world. It employs quantitative and qualitative analysis to make its investments through a combination of fundamental bottom-up research, a high degree of flexibility, and integrated risk management. For its multi-strategy portfolios, the firm employs strategies like convertible and derivative arbitrage, corporate credit, long/short equity special situations, buyout investments, merger arbitrage, private investments, and structured credit. It also invests in real estate and traditional real estate assets including multifamily, office, hotel and retail, loans, portfolio acquisitions, loan pools, operating companies, structured debt products, public securities, and non-traditional real estate assets including gaming, distressed land and residential, cell towers, parking, golf, debt and senior housing. For private equity investments, it considers investments in a variety of special situations that seek to realize value through strategic sales or initial public offerings. The firm typically invests in the energy investments. It also manages a buyout fund, Och-Ziff Energy Fund. The firm was previously known as Och-Ziff Capital Management Group Inc. Sculptor Capital Management, Inc. was founded in 1994 and is based New York, New York.
About Legg Mason
Legg Mason, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides investment management and related services to company-sponsored mutual funds and other investment vehicles including pension funds, foundations, endowments, sovereign wealth funds, insurance companies, private banks, family offices, individuals, as well as to global, institutional, and retail clients. It launches and manages equity, fixed income, and multi-asset customized portfolios through its subsidiaries. The firm also launches and manages mutual funds and exchange traded funds for its clients through its subsidiaries. It invests in private and public equity, fixed income, and multi asset markets across the globe through its subsidiaries. Through its subsidiaries, the firm also invests in alternative markets. It also employs a combination of fundamental and quantitative research to make its investments through its subsidiaries. Legg Mason, Inc. was founded in 1899 and is based in Baltimore, Maryland.
Receive News & Ratings for Sculptor Capital Management Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sculptor Capital Management and related companies with MarketBeat.com's FREE daily email newsletter.