Head to Head Analysis: Moelis & Company (MC) versus Its Competitors

Moelis & Company (NYSE:MC) is one of 1,744 publicly-traded companies in the “Capital Markets” industry, but how does it weigh in compared to its rivals? We will compare Moelis & Company to similar companies based on the strength of its valuation, profitability, institutional ownership, risk, dividends, analyst recommendations and earnings.

Profitability

This table compares Moelis & Company and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Moelis & Company	14.50%	39.59%	17.04%
Moelis & Company Competitors	311.61%	79.26%	3.71%

Dividends

Moelis & Company pays an annual dividend of $2.60 per share and has a dividend yield of 4.4%. Moelis & Company pays out 90.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 30.0% of their earnings in the form of a dividend. Moelis & Company has raised its dividend for 1 consecutive years.

Volatility and Risk

Moelis & Company has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500. Comparatively, Moelis & Company’s rivals have a beta of 0.80, indicating that their average share price is 20% less volatile than the S&P 500.

Valuation and Earnings

This table compares Moelis & Company and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Moelis & Company	$1.52 billion	$233.04 million	20.44
Moelis & Company Competitors	$5.23 billion	$396.39 million	15.93

Moelis & Company’s rivals have higher revenue and earnings than Moelis & Company. Moelis & Company is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations for Moelis & Company and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Moelis & Company	0	6	2	0	2.25
Moelis & Company Competitors	5539	20096	22422	641	2.37

Moelis & Company presently has a consensus target price of $68.83, indicating a potential upside of 17.36%. As a group, “Capital Markets” companies have a potential upside of 27.09%. Given Moelis & Company’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Moelis & Company has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

91.5% of Moelis & Company shares are owned by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are owned by institutional investors. 6.3% of Moelis & Company shares are owned by insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Moelis & Company rivals beat Moelis & Company on 10 of the 15 factors compared.

About Moelis & Company

Moelis & Co. operates as a holding company. It engages in the provision of financial advisory, capital raising and asset management services to a client base including corporations, governments, sovereign wealth funds and financial sponsors. The firm focuses on clients including large public multinational corporations, middle market private companies, financial sponsors, entrepreneurs and governments. The company was founded by Kenneth David Moelis, Navid Mahmoodzadegan, Jeffrey Raich and Elizabeth Ann Crain in July 2007 and is headquartered in New York, NY.