TPG (NASDAQ:TPG) vs. Fifth Street Asset Management (OTCMKTS:FSAM) Critical Contrast

Fifth Street Asset Management (OTCMKTS:FSAM) and TPG (NASDAQ:TPG) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Dividends

Fifth Street Asset Management pays an annual dividend of $0.14 per share and has a dividend yield of 992.9%. TPG pays an annual dividend of $1.68 per share and has a dividend yield of 2.5%. TPG pays out -1,200.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings for Fifth Street Asset Management and TPG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fifth Street Asset Management	0	0	0	0	N/A
TPG	0	7	6	0	2.46

TPG has a consensus price target of $52.25, indicating a potential downside of 21.24%. Given TPG’s higher possible upside, analysts clearly believe TPG is more favorable than Fifth Street Asset Management.

Risk & Volatility

Fifth Street Asset Management has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, TPG has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Profitability

This table compares Fifth Street Asset Management and TPG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fifth Street Asset Management	N/A	N/A	N/A
TPG	1.08%	24.27%	8.58%

Institutional & Insider Ownership

86.8% of TPG shares are held by institutional investors. 85.4% of Fifth Street Asset Management shares are held by insiders. Comparatively, 76.5% of TPG shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Fifth Street Asset Management and TPG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fifth Street Asset Management	N/A	N/A	N/A	N/A	N/A
TPG	$2.14 billion	11.30	$80.09 million	($0.14)	-473.86

TPG has higher revenue and earnings than Fifth Street Asset Management.

Summary

TPG beats Fifth Street Asset Management on 9 of the 11 factors compared between the two stocks.

About Fifth Street Asset Management

Fifth Street Asset Management Inc. is an asset management holding company. The firm provides asset management services through its subsidiaries. Fifth Street Asset Management Inc. was founded in 1998 and is headquartered in Greenwich, Connecticut.

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.