CI Financial (NYSE:CIXXF) versus Silvercrest Asset Management Group (NASDAQ:SAMG) Critical Analysis

CI Financial (NYSE:CIXXF) and Silvercrest Asset Management Group (NASDAQ:SAMG) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Insider & Institutional Ownership

47.6% of Silvercrest Asset Management Group shares are held by institutional investors. 16.2% of Silvercrest Asset Management Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares CI Financial and Silvercrest Asset Management Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CI Financial	-2.28%	57.73%	5.23%
Silvercrest Asset Management Group	6.24%	11.40%	7.64%

Dividends

CI Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.6%. Silvercrest Asset Management Group pays an annual dividend of $0.80 per share and has a dividend yield of 4.3%. CI Financial pays out -169.7% of its earnings in the form of a dividend. Silvercrest Asset Management Group pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares CI Financial and Silvercrest Asset Management Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CI Financial	$2.03 billion	1.54	$3.72 million	($0.33)	-65.76
Silvercrest Asset Management Group	$117.41 million	2.19	$9.09 million	$0.80	23.15

Silvercrest Asset Management Group has lower revenue, but higher earnings than CI Financial. CI Financial 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.

Volatility and Risk

CI Financial has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Silvercrest Asset Management Group has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for CI Financial and Silvercrest Asset Management Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CI Financial	2	1	0	0	1.33
Silvercrest Asset Management Group	0	0	1	0	3.00

Summary

Silvercrest Asset Management Group beats CI Financial on 11 of the 15 factors compared between the two stocks.

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.

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.