Blackstone vs Carlyle Which Is a Better Investment?

Blackstone Group and Carlyle Group are two of the biggest names in the private equity industry, with both companies managing enormous amounts of assets and investments across a wide range of industries. While both firms have seen significant success in recent years, they have taken slightly different approaches to their investments. Blackstone tends to focus on larger, more established companies, while Carlyle has a reputation for taking on riskier investments and turnaround opportunities. Both stocks have been popular among investors looking to capitalize on the potential for high returns in the private equity sector.

Blackstone or Carlyle?

When comparing Blackstone and Carlyle, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Blackstone and Carlyle.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Blackstone has a dividend yield of 1.84%, while Carlyle has a dividend yield of 2.65%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Blackstone reports a 5-year dividend growth of -1.93% year and a payout ratio of 196.69%. On the other hand, Carlyle reports a 5-year dividend growth of 2.09% year and a payout ratio of 535.91%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Blackstone P/E ratio at 64.58 and Carlyle's P/E ratio at 160.44. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Blackstone P/B ratio is 20.50 while Carlyle's P/B ratio is 2.98.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Blackstone has seen a 5-year revenue growth of 1.12%, while Carlyle's is -0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Blackstone's ROE at 32.22% and Carlyle's ROE at 2.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $186.65 for Blackstone and $52.41 for Carlyle. Over the past year, Blackstone's prices ranged from $111.70 to $200.96, with a yearly change of 79.91%. Carlyle's prices fluctuated between $35.81 and $55.11, with a yearly change of 53.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.