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Women-owned financial advisory firms outdo firms owned primarily by men in operating margin and median revenue per staff, among other key metrics, according to a new Investment News report. The publication looked at 2015 data for more than 100 firms. A woman-owned advisory firm for the study is one where women make up at least 50% of the partners.
Men-owned firms outperformed woman-owned firms in one key category: average revenue. Average client size at men-owned firms is also larger.
But while size matters, efficiency with revenues is key for profit and sustainability. And that's where women shine, the survey found, doing more with less. On median revenue per staff, for example, woman-owned firms posted $259,000 compared to $253,000 for men-owned firms. “Larger firms usually see greater staff productivity,” the survey points out, but in this case “women-owned firms appear more adept at leveraging talent.” Women-owned firms outperformed their productivity benchmark by 5%, the survey adds, while their counterparts underperformed by 13.1%.
Women-owned financial advisory firms also had a 29% operating margin compared with 22.7% for men-owned firms.
Women vs. Men
Women-owned Men-owned firms
firms
Average revenue $2.7 million $4.8 million
Revenue growth, 2014-2015 8.6% 6.7%
Operating margin 29% 22.7%
Average client size $781,000 $1,356,000
Income per owner $588,000 $643,000
Median revenue per staff $259,000 $253,000
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