Reviewing SEI Investments (NASDAQ:SEIC) & ArrowMark Financial (NASDAQ:BANX)

ArrowMark Financial (NASDAQ:BANX) and SEI Investments (NASDAQ:SEIC) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for ArrowMark Financial and SEI Investments, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ArrowMark Financial	0	0	0	0	0.00
SEI Investments	0	4	4	0	2.50

SEI Investments has a consensus target price of $104.40, suggesting a potential upside of 33.38%. Given SEI Investments’ stronger consensus rating and higher possible upside, analysts plainly believe SEI Investments is more favorable than ArrowMark Financial.

Volatility and Risk

ArrowMark Financial has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500. Comparatively, SEI Investments has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Dividends

ArrowMark Financial pays an annual dividend of $1.80 per share and has a dividend yield of 8.3%. SEI Investments pays an annual dividend of $0.98 per share and has a dividend yield of 1.3%. ArrowMark Financial pays out 391.3% 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 pays out 18.0% of its earnings in the form of a dividend. SEI Investments has increased its dividend for 34 consecutive years.

Institutional & Insider Ownership

24.9% of ArrowMark Financial shares are held by institutional investors. Comparatively, 70.6% of SEI Investments shares are held by institutional investors. 0.7% of ArrowMark Financial shares are held by insiders. Comparatively, 14.6% of SEI Investments shares are held 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.

Valuation & Earnings

This table compares ArrowMark Financial and SEI Investments”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ArrowMark Financial	N/A	N/A	N/A	$0.46	47.28
SEI Investments	$2.25 billion	4.27	$581.19 million	$5.44	14.39

SEI Investments has higher revenue and earnings than ArrowMark Financial. SEI Investments is trading at a lower price-to-earnings ratio than ArrowMark Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ArrowMark Financial and SEI Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ArrowMark Financial	N/A	N/A	N/A
SEI Investments	31.09%	30.21%	26.06%

Summary

SEI Investments beats ArrowMark Financial on 13 of the 15 factors compared between the two stocks.

About ArrowMark Financial

ArrowMark Financial Corp. is a closed-end balanced mutual fund launched and managed by ArrowMark Asset Management, LLC. It invests in public equity and fixed income markets of global region. For its equity portion, the fund invests in stocks of companies operating across financials, banks sectors. It invests in growth and value stocks of companies across diversified market capitalization. For its fixed income portion, the fund invests in debt and subordinated debt, structured notes and securities, regulatory capital securities which are rated below investment grade. ArrowMark Financial Corp. was formed on February 7, 2013 and is domiciled in the United States.

About SEI Investments

SEI Investments Company is a publicly owned asset management holding company. Through its subsidiaries, the firm provides wealth management, retirement and investment solutions, asset management, asset administration, investment processing outsourcing solutions, financial services, and investment advisory services to its clients. It provides its services to private banks, independent financial advisers, institutional investors, investment managers, investment advisors, wealth management organizations, corporations, retirement scheme sponsors, not-for-profit organizations, hedge fund managers, registered investment advisers, independent broker-dealers, financial planners, life insurance agents, defined-benefit schemes, defined-contribution schemes, endowments, foundations, and board-designated fund, through its subsidiaries. Through its subsidiaries, the firm manages separate client-focused portfolios. It also launches and manages equity, fixed income, and balanced mutual funds, through its subsidiaries. Through its subsidiaries, the firm invests in public equity and fixed income markets. It employs fundamental and quantitative analysis with a focus on top-down and bottom-up analysis to make its investments, through its subsidiaries. SEI Investments Company was founded in 1968 and is based in Oaks, Pennsylvania.