The main difference between these two types of analysts is the type of firm where they work, and people who they give advice.
Sales analyst works at a brokerage or firm that manages individual accounts and makes recommendations to the clients of the firm. Analysts-those who have often heard the recommendation of “strong buy,” “outperform” “neutral” or “sell”. These recommendations help clients take decisions to buy and/or sell certain stocks. It is profitable for the broker because every time the client makes a decision to trade stock brokers get a Commission from transactions.
This does not mean that analysts recommend or change their opinion about the stock just to create transactions. However, it is important to understand that these analysts are paid and ultimately be answered by the broker and not the client. In addition, the recommendations of sell-side analysts are called “blanket recommendations” because they are not directed at any one customer, and the total weight. These recommendations are essentially broad and, as a result, they can be appropriate for a particular investment strategy. When you are considering selling recommendations, it is important to determine whether the recommendation fits your individual style of investing.
Buy-analyst, usually works for institutional investors, such as hedge funds, pension funds or mutual funds. These individuals conduct research and make recommendations to the heads of the money from the Fund where they work. Buy-side analysts will determine how promising the investment seems and how well it coincides with the investment strategy of the Fund; they base their recommendations on this evidence. These recommendations are made solely in the best interests of the Fund that pays for them, not available to anyone outside the Fund. If the Fund uses a good analyst, he does not want to compete means to have access to the same advice. The success of buy-side analyst or talent to judge by the number of profitable recommendations he or she makes to the Fund.
Read more on this topic see what you need to know about financial analysts and why there are few sell ratings on wall Street.