BrightSphere Investment Group (NYSE:BSIG) versus TPG (NASDAQ:TPG) Head-To-Head Review

TPG (NASDAQ:TPG) and BrightSphere Investment Group (NYSE:BSIG) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Earnings & Valuation

This table compares TPG and BrightSphere Investment Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG	$2.39 billion	8.83	$80.09 million	($0.14)	-413.04
BrightSphere Investment Group	$426.60 million	2.22	$65.80 million	$1.64	15.57

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for TPG and BrightSphere Investment Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG	0	6	6	0	2.50
BrightSphere Investment Group	0	1	1	0	2.50

TPG currently has a consensus target price of $47.25, indicating a potential downside of 18.30%. BrightSphere Investment Group has a consensus target price of $23.00, indicating a potential downside of 9.95%. Given BrightSphere Investment Group’s higher possible upside, analysts clearly believe BrightSphere Investment Group is more favorable than TPG.

Dividends

TPG pays an annual dividend of $1.68 per share and has a dividend yield of 2.9%. BrightSphere Investment Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. TPG pays out -1,199.9% of its earnings in the form of a dividend. BrightSphere Investment Group pays out 2.4% 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. TPG is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

TPG has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, BrightSphere Investment Group has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Profitability

This table compares TPG and BrightSphere Investment Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG	1.08%	24.27%	8.58%
BrightSphere Investment Group	15.00%	871.33%	15.43%

Institutional & Insider Ownership

86.8% of TPG shares are held by institutional investors. Comparatively, 98.7% of BrightSphere Investment Group shares are held by institutional investors. 76.5% of TPG shares are held by company insiders. Comparatively, 27.7% of BrightSphere Investment Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

TPG beats BrightSphere Investment Group on 8 of the 14 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 BrightSphere Investment Group

BrightSphere Investment Group Inc. is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as BrightSphere Investment Group plc. BrightSphere Investment Group Inc. was formed in 1980 and is based in Boston, Massachusetts.