GCM Grosvenor (NASDAQ:GCMG – Get Free Report) and Schroders (OTCMKTS:SHNWF – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.
Profitability
This table compares GCM Grosvenor and Schroders’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GCM Grosvenor | 9.05% | 222.78% | 18.36% |
| Schroders | N/A | N/A | N/A |
Volatility & Risk
GCM Grosvenor has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Schroders has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GCM Grosvenor | $557.57 million | 4.98 | $45.37 million | $0.45 | 30.53 |
| Schroders | $4.29 billion | 2.73 | $711.73 million | N/A | N/A |
Schroders has higher revenue and earnings than GCM Grosvenor.
Analyst Recommendations
This is a summary of recent recommendations and price targets for GCM Grosvenor and Schroders, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GCM Grosvenor | 0 | 1 | 3 | 0 | 2.75 |
| Schroders | 1 | 4 | 0 | 0 | 1.80 |
GCM Grosvenor currently has a consensus price target of $15.00, suggesting a potential upside of 9.17%. Given GCM Grosvenor’s stronger consensus rating and higher possible upside, equities research analysts plainly believe GCM Grosvenor is more favorable than Schroders.
Insider and Institutional Ownership
100.0% of GCM Grosvenor shares are owned by institutional investors. 70.7% of GCM Grosvenor shares are owned by 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
GCM Grosvenor beats Schroders on 9 of the 12 factors compared between the two stocks.
About GCM Grosvenor
GCM Grosvenor Inc. is global alternative asset management solutions provider. The firm primarily provides its services to pooled investment vehicles. It also provides its services to investment companies, high net worth individuals, pension and profit sharing plans and state or municipal government entities. The firm invests in equity and alternative investment markets of the United States and internationally. The firm invests in multi-strategy, credit-focused, equity-focused, macro-focused, commodity-focused, and other specialty portfolios. It focuses in hedge fund asset classes, private equity, real estate, and/or infrastructure, credit and absolute return strategies. It also focuses in primary fund investments, secondary fund investments, and co-investments with a focus on buyout, distressed debt, mezzanine, venture capital/growth equity investments. The firm seeks to do seed investments in small, emerging, and diverse private equity firms. The firm seeks to make regionally-focused investments in middle-market buyout. It prefers to invest in aerospace and defense, advanced electronics, information technology, biosciences, and advanced materials. It focuses on Ohio and the Midwest region. The firm employs fundamental and quantitative analysis. GCM Grosvenor Inc. was founded in 1971 and is based in Chicago, Illinois with additional offices in North America, Asia, Australia and Europe.
About Schroders
Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe. The firm’s alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds. It conducts an in-house research to make its investments. The company was formerly known as New Schroders plc and changed its name to Schroders plc in April 2000. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.
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