Sculptor Capital Management (NYSE:SCU) and Federated Investors (NYSE:FII) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Earnings & Valuation
This table compares Sculptor Capital Management and Federated Investors’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sculptor Capital Management||$507.22 million||2.06||-$24.28 million||$1.17||17.83|
|Federated Investors||$1.14 billion||3.01||$220.30 million||$2.39||14.15|
Institutional and Insider Ownership
19.9% of Sculptor Capital Management shares are owned by institutional investors. Comparatively, 82.3% of Federated Investors shares are owned by institutional investors. 60.6% of Sculptor Capital Management shares are owned by insiders. Comparatively, 5.5% of Federated Investors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Sculptor Capital Management pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. Federated Investors pays an annual dividend of $1.08 per share and has a dividend yield of 3.2%. Sculptor Capital Management pays out 10.3% of its earnings in the form of a dividend. Federated Investors pays out 45.2% 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.
This is a summary of recent ratings and price targets for Sculptor Capital Management and Federated Investors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sculptor Capital Management||0||0||0||0||N/A|
Federated Investors has a consensus price target of $34.33, indicating a potential upside of 1.58%. Given Federated Investors’ higher possible upside, analysts clearly believe Federated Investors is more favorable than Sculptor Capital Management.
Risk & Volatility
Sculptor Capital Management has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Federated Investors has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.
This table compares Sculptor Capital Management and Federated Investors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sculptor Capital Management||-8.39%||87.04%||6.75%|
Federated Investors beats Sculptor Capital Management on 10 of the 15 factors compared between the two stocks.
About Sculptor Capital Management
Sculptor Capital Management, Inc. is a publicly owned hedge fund sponsor. The firm provides investment advisory services to its clients. It primarily caters to institutional investors, which include pension funds, fund-of-funds, foundations and endowments, corporations and other institutions, private banks and family offices. The firm also manages separate client-focused equity, fixed income, and real estate separate accounts. It also manages commingled funds and specialized products. The firm invests in equity, fixed income and real estate markets across the world. It employs quantitative and qualitative analysis to make its investments through a combination of fundamental bottom-up research, a high degree of flexibility, and integrated risk management. For its multi-strategy portfolios, the firm employs strategies like convertible and derivative arbitrage, corporate credit, long/short equity special situations, buyout investments, merger arbitrage, private investments, and structured credit. It also invests in real estate and traditional real estate assets including multifamily, office, hotel and retail, loans, portfolio acquisitions, loan pools, operating companies, structured debt products, public securities, and non-traditional real estate assets including gaming, distressed land and residential, cell towers, parking, golf, debt and senior housing. For private equity investments, it considers investments in a variety of special situations that seek to realize value through strategic sales or initial public offerings. The firm typically invests in the energy investments. It also manages a buyout fund, Och-Ziff Energy Fund. The firm was previously known as Och-Ziff Capital Management Group Inc. Sculptor Capital Management, Inc. was founded in 1994 and is based New York, New York.
About Federated Investors
Federated Investors, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors. Through its subsidiaries, it manages separate client-focused equity, fixed income, balanced and money market mutual funds along with separate client-focused equity, fixed income, money market, and balanced portfolios. Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of small-cap, mid-cap, and large-cap companies. The firm makes its fixed income investments in ultra-short, short-term, and intermediate-term mortgage-backed, U.S. Government, U.S. corporate, high yield, and municipal securities. It employs both fundamental and quantitative analysis to make its equity investments. Federated Investors, Inc. was founded in 1955 and is based in Pittsburgh, Pennsylvania with additional offices in New York City and London, United Kingdom.
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