Critical Analysis: GCM Grosvenor (NASDAQ:GCMG) & AlTi Global (NASDAQ:ALTI)

GCM Grosvenor (NASDAQ:GCMG) and AlTi Global (NASDAQ:ALTI) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Institutional and Insider Ownership

99.9% of GCM Grosvenor shares are owned by institutional investors. Comparatively, 3.6% of AlTi Global shares are owned by institutional investors. 77.3% of GCM Grosvenor shares are owned by insiders. Comparatively, 22.1% of AlTi Global shares are owned 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.

Profitability

This table compares GCM Grosvenor and AlTi Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GCM Grosvenor	3.08%	-73.06%	14.43%
AlTi Global	-41.51%	2.31%	1.35%

Volatility and Risk

GCM Grosvenor has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, AlTi Global has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for GCM Grosvenor and AlTi Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCM Grosvenor	0	3	2	0	2.40
AlTi Global	0	0	0	1	4.00

GCM Grosvenor presently has a consensus price target of $13.70, suggesting a potential upside of 9.08%. AlTi Global has a consensus price target of $9.00, suggesting a potential upside of 113.27%. Given AlTi Global’s stronger consensus rating and higher probable upside, analysts plainly believe AlTi Global is more favorable than GCM Grosvenor.

Earnings and Valuation

This table compares GCM Grosvenor and AlTi Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GCM Grosvenor	$469.00 million	5.07	$12.77 million	($0.06)	-209.33
AlTi Global	$246.97 million	2.39	-$162.61 million	($1.75)	-2.41

GCM Grosvenor has higher revenue and earnings than AlTi Global. GCM Grosvenor is trading at a lower price-to-earnings ratio than AlTi Global, indicating that it is currently the more affordable of the two stocks.

Summary

GCM Grosvenor beats AlTi Global on 9 of the 15 factors compared between the two stocks.

About GCM Grosvenor

GCM Grosvenor Inc. is global alternative asset management solutions provider. The firm primarily provides its services to pooled investment vehicles. It also provides its services to investment companies, high net worth individuals, pension and profit sharing plans and state or municipal government entities. The firm invests in equity and alternative investment markets of the United States and internationally. The firm invests in multi-strategy, credit-focused, equity-focused, macro-focused, commodity-focused, and other specialty portfolios. It focuses in hedge fund asset classes, private equity, real estate, and/or infrastructure, credit and absolute return strategies. It also focuses in primary fund investments, secondary fund investments, and co-investments with a focus on buyout, distressed debt, mezzanine, venture capital/growth equity investments. The firm seeks to do seed investments in small, emerging, and diverse private equity firms. The firm seeks to make regionally-focused investments in middle-market buyout. It prefers to invest in aerospace and defense, advanced electronics, information technology, biosciences, and advanced materials. It focuses on Ohio and the Midwest region. The firm employs fundamental and quantitative analysis. GCM Grosvenor Inc. was founded in 1971 and is based in Chicago, Illinois with additional offices in North America, Asia, Australia and Europe.

About AlTi Global

AlTi Global, Inc. provides wealth and asset management services individuals, families, foundations, and institutions in the United States, the United Kingdom, and internationally. It operates through two segments, Wealth Management and Strategic Alternatives. The company offers discretionary investment management, non-discretionary investment advisory, and investment management and advisory services. It also provides trust and administration services, such as entity formation and management; creating or modifying trust instruments and administrative practices to meet beneficiary needs; corporate, trustee-executor, and fiduciary services; provision of directors and company secretarial services; administering entity ownership of intellectual property rights; advisory and administration services in connection with investments in marine and aviation assets; and administering entity ownership of fine art and collectibles. In addition, the company offers family office services comprising bookkeeping and back office services, private foundation management and grant making, oversight of trust administration, financial tracking and reporting, cash flow management and bill pay, and other financial services, as well as clients estate and wealth planning, family governance and education, and philanthropic and strategic services. It also provides ancillary fund management services, including investments, financial planning and strategy, sales and marketing, and back and middle office infrastructure and administration. The company offers strategic advisory, corporate advisory, brokerage, and placement agency services; structures, arranges, and provides investors with co-investment opportunities in various alternative assets; manages and advises public and private investment funds, as well as alternatives platform. The company was formerly known as Alvarium Tiedemann Holdings, Inc. and changed its name to AlTi Global, Inc. in April 2023. The company is based in New York, New York.