TPG (NASDAQ:TPG – Get Free Report) and Futu (NASDAQ:FUTU – Get Free Report) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.
Institutional & Insider Ownership
94.0% of TPG shares are held by institutional investors. 61.4% of TPG shares are held by company insiders. Comparatively, 35.2% of Futu shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and target prices for TPG and Futu, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TPG | 0 | 5 | 12 | 0 | 2.71 |
| Futu | 0 | 4 | 2 | 0 | 2.33 |
Profitability
This table compares TPG and Futu’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TPG | 4.67% | 28.10% | 8.03% |
| Futu | 42.95% | 28.20% | 4.40% |
Earnings & Valuation
This table compares TPG and Futu”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TPG | $4.67 billion | 3.70 | $184.59 million | $0.66 | 68.14 |
| Futu | $25.90 billion | 0.61 | $1.46 billion | $10.10 | 11.21 |
Futu has higher revenue and earnings than TPG. Futu is trading at a lower price-to-earnings ratio than TPG, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
TPG has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Futu has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.
Dividends
TPG pays an annual dividend of $2.36 per share and has a dividend yield of 5.2%. Futu pays an annual dividend of $2.55 per share and has a dividend yield of 2.3%. TPG pays out 357.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Futu pays out 25.2% of its earnings in the form of a dividend.
Summary
TPG beats Futu on 10 of the 16 factors compared between the two stocks.
About TPG
TPG Inc. operates as an alternative asset manager in the United States and internationally. The company offers investment management services to TPG Funds, limited partners, and other vehicles. It also offers monitoring services to portfolio companies; advisory, debt and equity arrangement, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. In addition, the company invests in private equity funds, real estate funds, hedge funds, and credit funds. TPG Inc. was founded in 1992 and is based in Fort Worth, Texas. The company operates as a subsidiary of TPG GP A, LLC.
About Futu
Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin financing and fund distribution services through its Futubull and Moomoo digital platforms. The company also provides financial information and online community services; online wealth management services under the Money Plus brand name through its Futubull and moomoo platforms, which provides its client access to mutual funds, private funds, bonds, structured products, and other wealth management products; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas. Futu Holdings Limited was founded in 2007 and is headquartered in Sheung Wan, Hong Kong.
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