Janus Henderson Group (NYSE:JHG) & Brookfield Asset Management (NYSE:BAM) Critical Contrast

Brookfield Asset Management (NYSE:BAM) and Janus Henderson Group (NYSE:JHG) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Institutional and Insider Ownership

68.4% of Brookfield Asset Management shares are owned by institutional investors. Comparatively, 87.9% of Janus Henderson Group shares are owned by institutional investors. 11.0% of Brookfield Asset Management shares are owned by insiders. Comparatively, 19.6% of Janus Henderson Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Brookfield Asset Management and Janus Henderson Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield Asset Management	51.29%	92.37%	65.35%
Janus Henderson Group	21.02%	10.76%	7.56%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Brookfield Asset Management and Janus Henderson Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Asset Management	1	5	5	0	2.36
Janus Henderson Group	1	6	2	0	2.11

Brookfield Asset Management currently has a consensus target price of $46.41, indicating a potential downside of 11.53%. Janus Henderson Group has a consensus target price of $38.63, indicating a potential downside of 2.02%. Given Janus Henderson Group’s higher possible upside, analysts clearly believe Janus Henderson Group is more favorable than Brookfield Asset Management.

Volatility and Risk

Brookfield Asset Management has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Janus Henderson Group has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Valuation and Earnings

This table compares Brookfield Asset Management and Janus Henderson Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Asset Management	$390.00 million	59.69	$451.00 million	$1.08	48.57
Janus Henderson Group	$2.23 billion	2.84	$392.00 million	$2.65	14.88

Brookfield Asset Management has higher earnings, but lower revenue than Janus Henderson Group. Janus Henderson Group is trading at a lower price-to-earnings ratio than Brookfield Asset Management, indicating that it is currently the more affordable of the two stocks.

Dividends

Brookfield Asset Management pays an annual dividend of $1.52 per share and has a dividend yield of 2.9%. Janus Henderson Group pays an annual dividend of $1.56 per share and has a dividend yield of 4.0%. Brookfield Asset Management pays out 140.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Janus Henderson Group pays out 58.9% of its earnings in the form of a dividend. Janus Henderson Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Brookfield Asset Management beats Janus Henderson Group on 9 of the 16 factors compared between the two stocks.

About Brookfield Asset Management

Brookfield Asset Management Ltd. is a real estate investment firm specializing in alternative asset management services. Its renewable power and transition business includes the operates in the hydroelectric, wind, solar, distributed generation, and sustainable solution sector. The company's infrastructure business engages in the utilities, transport, midstream, and data infrastructure sectors. In addition, its private equity business offers industrial, infrastructure, and business services sectors; and real estate business, which includes housing, logistics, hospitality, science and innovation, office, and retail sectors. Further, it provides credit business; and insurance solution in the reinsurance, annuities, operating platform, and investment solutions sectors. Brookfield Asset Management Ltd. was incorporated in 2022 and is headquartered in Toronto, Canada.

About Janus Henderson Group

Janus Henderson Group plc is an asset management holding entity. Through its subsidiaries, the firm provides services to institutional, retail clients, and high net worth clients. It manages separate client-focused equity and fixed income portfolios. The firm also manages equity, fixed income, and balanced mutual funds for its clients. It invests in public equity and fixed income markets, as well as invests in real estate and private equity. Janus Henderson Group plc was founded in 1934 and is based in London, United Kingdom with additional offices in Jersey, United Kingdom and Sydney, Australia.