GCMG vs STEP

For growth investors, StepStone Group Inc.

(STEP) is the stronger pick with 65. 1% revenue growth year-over-year, versus 15. 8% for GCM Grosvenor Inc. (GCMG). GCM Grosvenor Inc. (GCMG) offers the better valuation at 328. 9x trailing P/E (12. 5x forward), making it the more compelling value choice. Analysts rate GCM Grosvenor Inc. (GCMG) a "Buy" — based on 8 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, GCM Grosvenor Inc.

is actually cheaper at 12. 5x.

Over the past 5 years, StepStone Group Inc.

(STEP) delivered a total return of +76. 7%, compared to +0. 9% for GCM Grosvenor Inc. (GCMG). Over 10 years, the gap is even starker: STEP returned +136. 6% versus GCMG's +36. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), GCM Grosvenor Inc.

(GCMG) is the lower-risk stock at 0. 89β versus StepStone Group Inc. 's 1. 73β — meaning STEP is approximately 94% more volatile than GCMG relative to the S&P 500.

By revenue growth (latest reported year), StepStone Group Inc.

(STEP) is pulling ahead at 65. 1% versus 15. 8% for GCM Grosvenor Inc. (GCMG). On earnings-per-share growth, the picture is similar: GCM Grosvenor Inc. grew EPS 112. 3% year-over-year, compared to -376. 9% for StepStone Group Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

GCM Grosvenor Inc.

(GCMG) is the more profitable company, earning 3. 6% net margin versus -15. 3% for StepStone Group Inc. — meaning it keeps 3. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GCMG leads at 14. 0% versus -21. 3% for STEP. At the gross margin level — before operating expenses — GCMG leads at 45. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, GCM Grosvenor Inc.

(GCMG) trades at 12. 5x forward P/E versus 25. 9x for StepStone Group Inc. — 13. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GCMG: 112. 8% to $24. 00.

All stocks in this comparison pay dividends.

StepStone Group Inc. (STEP) offers the highest yield at 2. 0%, versus 1. 0% for GCM Grosvenor Inc. (GCMG).

For long-horizon retirement investors, GCM Grosvenor Inc.

(GCMG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 89), 1. 0% yield). StepStone Group Inc. (STEP) carries a higher beta of 1. 73 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (GCMG: +36. 9%, STEP: +136. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.