Management

Reviewing Grosvenor Capital Management (NASDAQ:GCMG) and AssetMark Financial (NYSE:AMK)


Grosvenor Capital Management (NASDAQ:GCMG – Get Rating) and AssetMark Financial (NYSE:AMK – Get Rating) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Grosvenor Capital Management and AssetMark Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grosvenor Capital Management 0 1 3 0 2.75
AssetMark Financial 0 0 1 1 3.50

Grosvenor Capital Management currently has a consensus price target of $12.33, suggesting a potential upside of 34.94%. AssetMark Financial has a consensus price target of $36.00, suggesting a potential upside of 72.00%. Given AssetMark Financial’s stronger consensus rating and higher probable upside, analysts plainly believe AssetMark Financial is more favorable than Grosvenor Capital Management.

Risk & Volatility

Grosvenor Capital Management has a beta of 0.04, suggesting that its share price is 96% less volatile than the S&P 500. Comparatively, AssetMark Financial has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Insider & Institutional Ownership

22.2% of Grosvenor Capital Management shares are held by institutional investors. Comparatively, 26.5% of AssetMark Financial shares are held by institutional investors. 77.3% of Grosvenor Capital Management shares are held by company insiders. Comparatively, 5.3% of AssetMark Financial shares are held 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.

Profitability

This table compares Grosvenor Capital Management and AssetMark Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Grosvenor Capital Management 4.04% -187.86% 20.71%
AssetMark Financial 4.84% 5.82% 4.25%

Earnings and Valuation

This table compares Grosvenor Capital Management and AssetMark Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Grosvenor Capital Management $531.59 million 3.24 $21.48 million $0.25 36.56
AssetMark Financial $530.30 million 2.90 $25.67 million $0.35 59.80

AssetMark Financial has lower revenue, but higher earnings than Grosvenor Capital Management. Grosvenor Capital Management is trading at a lower price-to-earnings ratio than AssetMark Financial, indicating that it is currently the more affordable of the two stocks.

Summary

AssetMark Financial beats Grosvenor Capital Management on 10 of the 15 factors compared between the two stocks.

About Grosvenor Capital Management (Get Rating)

Grosvenor Capital Management, L.P. is global alternative asset management solutions provider. The firm primarily provides its services to pooled investment vehicles. It also provides its services to investment companies, high net worth individuals, pension and profit sharing plans and state or municipal government entities. The firm invests in equity and alternative investment markets of the United States and internationally. The firm invests in multi-strategy, credit-focused, equity-focused, macro-focused, commodity-focused, and other specialty portfolios. It focuses in hedge fund asset classes, private equity, real estate, and/or infrastructure, credit and absolute return strategies. It also focuses in primary fund investments, secondary fund investments, and co-investments with a focus on buyout, distressed debt, mezzanine, venture capital/growth equity investments. The firm seeks to make regionally-focused investments in middle-market buyout. It prefers to invest in aerospace and defense, advanced electronics, information technology, biosciences, and advanced materials. It focuses on Ohio and the Midwest region. The firm employs fundamental and quantitative analysis. Grosvenor Capital Management, L.P. was founded in 1971 and is based in Chicago, Illinois with additional offices in North America, Asia and Europe.

About AssetMark Financial (Get Rating)

AssetMark Financial Holdings, Inc. provides wealth management and technology solutions in the United States. It offers an open-architecture product platform, as well as client advice, asset allocation options, practice management, support services, and technology to the financial adviser channel. The company provides integrated technology platform for advisers for accessing a range of automated processes, including new account opening, portfolio construction, streamlined financial planning, customer billing, investor reporting, progress to goal analysis, and client activity tracking; advisory services; and curated investment platform. It also offers SaaS-based financial planning, wellness, and client digital engagement solutions. The company also offers mutual funds; custodial recordkeeping services primarily to investor clients of registered investment advisers; and wealth management services for individual investors. It serves independent advisers who provide wealth management advice to the U.S. investors and advisers. The company was founded in 1996 and is headquartered in Concord, California. AssetMark Financial Holdings, Inc. is a subsidiary of Huatai International Investment Holdings Limited.



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