Noah Holdings (NYSE: NOAH) and Janus Capital Group (NYSE:JNS) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Janus Capital Group pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. Noah Holdings does not pay a dividend. Janus Capital Group pays out 55.7% of its earnings in the form of a dividend. Noah Holdings has raised its dividend for 6 consecutive years.
This is a summary of recent ratings and price targets for Noah Holdings and Janus Capital Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Janus Capital Group||1||6||0||0||1.86|
Noah Holdings currently has a consensus price target of $29.00, suggesting a potential downside of 1.86%. Janus Capital Group has a consensus price target of $14.20, suggesting a potential upside of 0.21%. Given Janus Capital Group’s higher probable upside, analysts clearly believe Janus Capital Group is more favorable than Noah Holdings.
This table compares Noah Holdings and Janus Capital Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Janus Capital Group||12.54%||7.26%||4.48%|
Institutional & Insider Ownership
41.6% of Noah Holdings shares are held by institutional investors. Comparatively, 90.2% of Janus Capital Group shares are held by institutional investors. 2.1% of Janus Capital Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Noah Holdings and Janus Capital Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Noah Holdings||$400.55 million||2.93||$120.04 million||$1.73||17.08|
|Janus Capital Group||N/A||N/A||N/A||$0.79||17.94|
Noah Holdings has higher revenue and earnings than Janus Capital Group. Noah Holdings is trading at a lower price-to-earnings ratio than Janus Capital Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Noah Holdings has a beta of 2.37, indicating that its stock price is 137% more volatile than the S&P 500. Comparatively, Janus Capital Group has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.
Noah Holdings beats Janus Capital Group on 10 of the 14 factors compared between the two stocks.
Noah Holdings Company Profile
Noah Holdings Limited is a wealth management service provider with a focus on global wealth investment and asset allocation services for high net worth individuals and enterprises in China. The Company operates through three segments: wealth management, asset management and Internet finance. It also provides Internet finance services to clients in China. It provides direct access to China’s high net worth population. With approximately 1,100 relationship managers in over 130 branch offices, its coverage network includes China’s regions where high net worth population is concentrated, including the Yangtze River Delta, the Pearl River Delta, the Bohai Rim and other regions. Its product offerings consist primarily of over-the-counter (OTC) wealth management and OTC asset management products, mutual fund products and asset management plans originated in China and designed to cater to the needs of China’s high net worth population.
Janus Capital Group Company Profile
Janus Capital Group Inc. provides investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, separate accounts, other pooled investment vehicles, exchange-traded products (ETPs) and subadvised relationships (collectively referred to as investment products) in both domestic and international markets. The Company operates through investment management business segment. The Company provides investment management solutions across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives. As of December 31, 2016, the Company’s investment products were distributed through three primary channels: intermediary, institutional and self-directed. Each distribution channel focuses on specific investor groups and the requirements of each group.
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