U.S. Global Investors (NASDAQ:GROW) and Diamond Hill Investment Group (NASDAQ:DHIL) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Institutional & Insider Ownership
22.6% of U.S. Global Investors shares are held by institutional investors. Comparatively, 54.9% of Diamond Hill Investment Group shares are held by institutional investors. 6.3% of Diamond Hill Investment Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for U.S. Global Investors and Diamond Hill Investment Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|U.S. Global Investors||0||0||0||0||N/A|
|Diamond Hill Investment Group||0||0||0||0||N/A|
U.S. Global Investors pays an annual dividend of $0.03 per share and has a dividend yield of 2.1%. Diamond Hill Investment Group does not pay a dividend.
Valuation and Earnings
This table compares U.S. Global Investors and Diamond Hill Investment Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|U.S. Global Investors||$4.92 million||4.46||-$3.39 million||N/A||N/A|
|Diamond Hill Investment Group||$145.63 million||3.17||$47.38 million||N/A||N/A|
Diamond Hill Investment Group has higher revenue and earnings than U.S. Global Investors.
This table compares U.S. Global Investors and Diamond Hill Investment Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|U.S. Global Investors||-126.27%||-27.55%||-25.55%|
|Diamond Hill Investment Group||34.29%||18.66%||12.99%|
Risk and Volatility
U.S. Global Investors has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Diamond Hill Investment Group has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.
Diamond Hill Investment Group beats U.S. Global Investors on 7 of the 10 factors compared between the two stocks.
U.S. Global Investors Company Profile
U.S. Global Investors, Inc. is a publicly owned investment manager. The firm primarily provides its services to investment companies. It also provides its services to pooled investment vehicles. The firm manages equity and fixed income mutual funds for its clients. It also manages hedge funds. The firm also manages exchange traded funds. It invests in the public equity and fixed income markets across the globe. It invests in G.A.R.P. and value stocks to make its equity investments. The firm employs a fundamental and quantitative analysis with top-down and bottom-up stock picking approach to make its investments. U.S. Global Investors, Inc. was founded in 1968 and is based in San Antonio, Texas.
Diamond Hill Investment Group Company Profile
Diamond Hill Investment Group, Inc., together with its subsidiaries, provides investment advisory and fund administration services in the United States. It sponsors, distributes, and offers investment advisory and related services to a range of clients, such as corporations, mutual funds, retirement plans, public pension funds, endowments, foundations, financial institutions, and high net worth individuals. The company also provides fund administration services, including portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the mutual fund complex, as well as oversight of back-office service providers, such as the custodian, fund accountant, and transfer agent. It offers investment advisory services to third-party financial intermediaries comprising independent registered investment advisors, brokers, financial planners, and wealth advisers; and fund administration services primarily to mutual funds, institutional accounts, and private investment funds. The company was founded in 1990 and is based in Columbus, Ohio.
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