Contrasting Fifth Street Asset Management (OTCMKTS:FSAM) and Focus Financial Partners (OTCMKTS:FOCS)

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

Valuation & Earnings

This table compares Fifth Street Asset Management and Focus Financial Partners’ 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
Focus Financial Partners $910.88 million 2.18 -$590,000.00 $0.99 28.94

Fifth Street Asset Management has higher earnings, but lower revenue than Focus Financial Partners.

Profitability

This table compares Fifth Street Asset Management and Focus Financial Partners’ 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
Focus Financial Partners -0.93% 16.83% 5.83%

Volatility & Risk

Fifth Street Asset Management has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Focus Financial Partners has a beta of 2.18, meaning that its stock price is 118% more volatile than the S&P 500.

Insider & Institutional Ownership

81.6% of Focus Financial Partners shares are owned by institutional investors. 85.4% of Fifth Street Asset Management shares are owned by company insiders. Comparatively, 0.1% of Focus Financial Partners shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Fifth Street Asset Management and Focus Financial Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fifth Street Asset Management 0 0 0 0 N/A
Focus Financial Partners 0 3 4 0 2.57

Focus Financial Partners has a consensus target price of $37.08, suggesting a potential upside of 29.44%. Given Focus Financial Partners’ higher possible upside, analysts plainly believe Focus Financial Partners is more favorable than Fifth Street Asset Management.

Summary

Focus Financial Partners beats Fifth Street Asset Management on 7 of the 9 factors compared between the two stocks.

Fifth Street Asset Management Company Profile

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.

Focus Financial Partners Company Profile

Focus Financial Partners Inc. provides wealth management services to primarily high net worth individuals and families. Its wealth management services include investment advice, financial and tax planning, consulting, tax return preparation, family office services, and other services. The company also offers recordkeeping and administration services. Focus Financial Partners Inc. was founded in 2006 and is headquartered in New York, New York.

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