Critical Contrast: TPG (NASDAQ:TPG) & Vinci Partners Investments (NASDAQ:VINP)

TPG (NASDAQ:TPG) and Vinci Partners Investments (NASDAQ:VINP) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for TPG and Vinci Partners Investments, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG	0	7	5	0	2.42
Vinci Partners Investments	0	0	2	0	3.00

TPG presently has a consensus price target of $44.42, indicating a potential downside of 8.87%. Vinci Partners Investments has a consensus price target of $14.50, indicating a potential upside of 45.73%. Given Vinci Partners Investments’ stronger consensus rating and higher possible upside, analysts plainly believe Vinci Partners Investments is more favorable than TPG.

Risk and Volatility

TPG has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Vinci Partners Investments has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500.

Profitability

This table compares TPG and Vinci Partners Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG	1.08%	24.27%	8.58%
Vinci Partners Investments	36.07%	13.37%	8.26%

Valuation & Earnings

This table compares TPG and Vinci Partners Investments’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG	$2.14 billion	8.30	$80.09 million	($0.14)	-348.14
Vinci Partners Investments	$591.93 million	0.90	$44.19 million	$0.81	12.28

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

Insider & Institutional Ownership

86.8% of TPG shares are owned by institutional investors. Comparatively, 34.1% of Vinci Partners Investments shares are owned by institutional investors. 76.5% of TPG shares are owned by company insiders. Comparatively, 49.3% of Vinci Partners Investments shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

TPG pays an annual dividend of $1.68 per share and has a dividend yield of 3.4%. Vinci Partners Investments pays an annual dividend of $0.68 per share and has a dividend yield of 6.8%. TPG pays out -1,200.0% of its earnings in the form of a dividend. Vinci Partners Investments pays out 84.0% 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 Vinci Partners Investments on 10 of the 16 factors compared between the two stocks.

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.

About Vinci Partners Investments

Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is based in Rio de Janeiro, Brazil.