PJT Partners (NYSE:PJT) and CI Financial (NYSE:CIXXF) Financial Review

PJT Partners (NYSE:PJT) and CI Financial (NYSE:CIXXF) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares PJT Partners and CI Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PJT Partners	$1.49 billion	2.21	$238.47 million	$4.90	28.94
CI Financial	$2.03 billion	1.54	$3.72 million	($2.08)	-10.48

PJT Partners has higher earnings, but lower revenue than CI Financial. CI Financial is trading at a lower price-to-earnings ratio than PJT Partners, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

89.2% of PJT Partners shares are held by institutional investors. 11.7% of PJT Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for PJT Partners and CI Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PJT Partners	0	5	0	0	2.00
CI Financial	2	1	0	0	1.33

PJT Partners currently has a consensus target price of $158.50, suggesting a potential upside of 11.79%. Given PJT Partners’ stronger consensus rating and higher possible upside, equities analysts plainly believe PJT Partners is more favorable than CI Financial.

Dividends

PJT Partners pays an annual dividend of $1.00 per share and has a dividend yield of 0.7%. CI Financial pays an annual dividend of $0.55 per share and has a dividend yield of 2.5%. PJT Partners pays out 20.4% of its earnings in the form of a dividend. CI Financial pays out -26.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CI Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares PJT Partners and CI Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PJT Partners	9.00%	24.03%	14.36%
CI Financial	-2.28%	57.73%	5.23%

Risk & Volatility

PJT Partners has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, CI Financial has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Summary

PJT Partners beats CI Financial on 10 of the 15 factors compared between the two stocks.

About PJT Partners

PJT Partners Inc., an investment bank, provides various strategic and capital markets advisory, restructuring and special situations, and shareholder advisory services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers advisory services to clients on various transactions, including mergers and acquisitions (M&A), spin-offs, activism defense, contested M&A, joint ventures, minority investments, and divestitures. The company also advises private and public company boards and management teams on strategies for building productive investor relationships with a focus on shareholder engagement; and strategic investor relations; environmental, social, and governance matters; and other investor-related matters. In addition, it provides advisory services related to debt and acquisition financings; structured product offerings; public equity raises, including initial public offering and SPAC offerings; and private capital raises for early and later stage companies, as well as other capital structure related matters. Further, the company offers advisory services in financial restructurings and reorganizations; liability management; distressed mergers and acquisitions; and to management teams, corporate boards, sponsors and creditors. Additionally, it provides private fund advisory and fundraising services for a range of investment strategies; and advisory services to general and partners on liquidity and other structured solutions. The company was formerly known as Blackstone Advisory Inc. and changed its name to PJT Partners Inc. in March 2015. PJT Partners Inc. was incorporated in 2014 and is headquartered in New York, New York.

About CI Financial

CI Financial Corp. is a publicly owned asset management holding company. Through its subsidiaries, the firm manages separate client focused equity, fixed income, and alternative investments portfolios. It also manages mutual funds, hedge funds, and fund of funds for its clients through its subsidiaries. The firm was founded in 1965 and is based in Toronto, Canada with additional offices in Vancouver, Canada; Calgary, Canada; and Montreal, Canada.