Silvercrest Asset Management Group (NASDAQ:SAMG – Get Free Report) and Eagle Point Credit (NYSE:ECC – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.
Volatility and Risk
Silvercrest Asset Management Group has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Eagle Point Credit has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Silvercrest Asset Management Group and Eagle Point Credit, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Silvercrest Asset Management Group | 1 | 1 | 0 | 0 | 1.50 |
| Eagle Point Credit | 0 | 2 | 2 | 0 | 2.50 |
Eagle Point Credit has a consensus target price of $3.75, suggesting a potential upside of 61.99%. Given Eagle Point Credit’s stronger consensus rating and higher possible upside, analysts clearly believe Eagle Point Credit is more favorable than Silvercrest Asset Management Group.
Profitability
This table compares Silvercrest Asset Management Group and Eagle Point Credit’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Silvercrest Asset Management Group | 0.74% | 8.55% | 4.67% |
| Eagle Point Credit | -84.29% | -1.83% | -0.99% |
Earnings and Valuation
This table compares Silvercrest Asset Management Group and Eagle Point Credit”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Silvercrest Asset Management Group | $125.32 million | 1.01 | $4.89 million | $0.12 | 89.00 |
| Eagle Point Credit | $203.99 million | 1.50 | -$115.00 million | $0.61 | 3.80 |
Silvercrest Asset Management Group has higher earnings, but lower revenue than Eagle Point Credit. Eagle Point Credit is trading at a lower price-to-earnings ratio than Silvercrest Asset Management Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
47.6% of Silvercrest Asset Management Group shares are owned by institutional investors. Comparatively, 19.5% of Eagle Point Credit shares are owned by institutional investors. 21.7% of Silvercrest Asset Management Group shares are owned by company insiders. Comparatively, 0.3% of Eagle Point Credit shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Dividends
Silvercrest Asset Management Group pays an annual dividend of $0.84 per share and has a dividend yield of 7.9%. Eagle Point Credit pays an annual dividend of $1.12 per share and has a dividend yield of 48.4%. Silvercrest Asset Management Group pays out 700.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eagle Point Credit pays out 183.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Silvercrest Asset Management Group has raised its dividend for 1 consecutive years. Eagle Point Credit is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Silvercrest Asset Management Group beats Eagle Point Credit on 9 of the 17 factors compared between the two stocks.
About Silvercrest Asset Management Group
Silvercrest Asset Management Group Inc., a wealth management firm, provides financial advisory and related family office services in the United States. The company serves ultra-high net worth individuals and families, as well as their trusts; endowments; foundations; and other institutional investors. It also manages funds of funds and other investment funds. The company was founded in 2002 and is headquartered in New York, New York.
About Eagle Point Credit
Eagle Point Credit Company Inc. is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S. senior secured loans. Eagle Point Credit Company Inc. was formed on March 24, 2014 and is domiciled in the United States.
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