SEI Investments (NASDAQ:SEIC – Get Free Report) and TPG (NASDAQ:TPG – Get Free Report) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.
Institutional & Insider Ownership
70.6% of SEI Investments shares are owned by institutional investors. Comparatively, 94.0% of TPG shares are owned by institutional investors. 4.8% of SEI Investments shares are owned by company insiders. Comparatively, 61.4% of TPG shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings for SEI Investments and TPG, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SEI Investments | 0 | 1 | 7 | 1 | 3.00 |
| TPG | 0 | 4 | 11 | 0 | 2.73 |
SEI Investments currently has a consensus price target of $125.50, indicating a potential upside of 13.71%. TPG has a consensus price target of $61.00, indicating a potential upside of 25.03%. Given TPG’s higher probable upside, analysts plainly believe TPG is more favorable than SEI Investments.
Valuation & Earnings
This table compares SEI Investments and TPG”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SEI Investments | $2.30 billion | 5.70 | $715.30 million | $5.75 | 19.19 |
| TPG | $4.67 billion | 4.01 | $184.59 million | $0.87 | 56.08 |
SEI Investments has higher earnings, but lower revenue than TPG. SEI Investments is trading at a lower price-to-earnings ratio than TPG, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SEI Investments and TPG’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SEI Investments | 28.06% | 30.14% | 22.75% |
| TPG | 5.32% | 29.05% | 8.15% |
Risk & Volatility
SEI Investments has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, TPG has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.
Dividends
SEI Investments pays an annual dividend of $1.04 per share and has a dividend yield of 0.9%. TPG pays an annual dividend of $2.20 per share and has a dividend yield of 4.5%. SEI Investments pays out 18.1% of its earnings in the form of a dividend. TPG pays out 252.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SEI Investments has increased its dividend for 34 consecutive years.
Summary
SEI Investments beats TPG on 10 of the 18 factors compared between the two stocks.
About SEI Investments
SEI Investments Company is a financial technology and investment services firm founded in 1968 by Alfred P. West Jr. The company provides technology, investment management and operational services to financial institutions and investors. Its offerings include investment processing and administration, outsourced investment management, and technology platforms that support wealth managers, asset managers, financial institutions and institutional investors. SEI also provides investment solutions through its own asset management business.
About TPG
TPG Inc. is a global alternative asset management firm that invests across private equity, growth equity, impact investing, real estate, credit and other investment strategies. The company manages investment funds and related products for institutional and individual investors. Founded in 1992 as Texas Pacific Group, TPG has expanded its investment platforms over time, including through its acquisition of Angelo Gordon, which added to its credit and real estate capabilities. The firm invests in businesses and assets across multiple industries and geographies, with operations and investment teams serving markets around the world.
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