Sculptor Capital Management (NYSE:SCU) versus The Blackstone Group (NYSE:BX) Head-To-Head Analysis

Sculptor Capital Management (NYSE:SCU) and The Blackstone Group (NYSE:BX) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Profitability

This table compares Sculptor Capital Management and The Blackstone Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sculptor Capital Management 19.58% 164.31% 33.72%
The Blackstone Group 26.66% 15.52% 8.07%

Volatility & Risk

Sculptor Capital Management has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, The Blackstone Group has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Institutional & Insider Ownership

20.1% of Sculptor Capital Management shares are held by institutional investors. Comparatively, 60.7% of The Blackstone Group shares are held by institutional investors. 9.4% of Sculptor Capital Management shares are held by company insiders. Comparatively, 1.0% of The Blackstone Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Sculptor Capital Management and The Blackstone Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sculptor Capital Management $897.02 million 1.59 $177.63 million $7.22 3.43
The Blackstone Group $6.10 billion 10.59 $1.05 billion $2.65 35.63

The Blackstone Group has higher revenue and earnings than Sculptor Capital Management. Sculptor Capital Management is trading at a lower price-to-earnings ratio than The Blackstone Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Sculptor Capital Management and The Blackstone Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sculptor Capital Management 0 1 1 0 2.50
The Blackstone Group 0 4 7 0 2.64

Sculptor Capital Management currently has a consensus price target of $28.63, suggesting a potential upside of 15.66%. The Blackstone Group has a consensus price target of $75.90, suggesting a potential downside of 18.96%. Given Sculptor Capital Management’s higher possible upside, equities research analysts clearly believe Sculptor Capital Management is more favorable than The Blackstone Group.

Dividends

Sculptor Capital Management pays an annual dividend of $1.20 per share and has a dividend yield of 4.8%. The Blackstone Group pays an annual dividend of $3.28 per share and has a dividend yield of 3.5%. Sculptor Capital Management pays out 16.6% of its earnings in the form of a dividend. The Blackstone Group pays out 123.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sculptor Capital Management is clearly the better dividend stock, given its higher yield and lower payout ratio.

Sculptor Capital Management Company Profile

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 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.

The Blackstone Group Company Profile

The Blackstone Group Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The firm typically invests in early-stage companies. It also provide capital markets services. The real estate segment specializes in opportunistic, core+ investments as well as debt investment opportunities collateralized by commercial real estate, and stabilized income-oriented commercial real estate across North America, Europe and Asia. The firm's corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts, mid-cap buyouts, buy and build platforms, which involves multiple acquisitions behind a single management team and platform, and growth equity/development projects involving significant minority investments in operating companies and greenfield development projects in energy and power, financial services, healthcare, life sciences, enterprise tech and consumer, as well as consumer technologies. Its hedge fund business manages a broad range of commingled and customized fund solutions and its credit business focuses on loans, and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity. The Blackstone Group Inc. was founded in 1985 and is headquartered in New York, New York with additional offices across Asia, Europe and North America.

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