Manning & Napier (NYSE: MN) and Virtus Investment Partners (NASDAQ:VRTS) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Volatility and Risk
Manning & Napier has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, Virtus Investment Partners has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.
51.6% of Manning & Napier shares are held by institutional investors. Comparatively, 95.8% of Virtus Investment Partners shares are held by institutional investors. 2.5% of Manning & Napier shares are held by insiders. Comparatively, 4.0% of Virtus Investment Partners shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Manning & Napier pays an annual dividend of $0.32 per share and has a dividend yield of 9.3%. Virtus Investment Partners pays an annual dividend of $1.80 per share and has a dividend yield of 1.5%. Manning & Napier pays out 66.7% of its earnings in the form of a dividend. Virtus Investment Partners pays out 33.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Valuation and Earnings
This table compares Manning & Napier and Virtus Investment Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Manning & Napier||$248.94 million||0.21||$9.27 million||$0.48||7.19|
|Virtus Investment Partners||$322.55 million||2.61||$48.50 million||$5.36||21.95|
Virtus Investment Partners has higher revenue and earnings than Manning & Napier. Manning & Napier is trading at a lower price-to-earnings ratio than Virtus Investment Partners, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Manning & Napier and Virtus Investment Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Manning & Napier||0||2||0||0||2.00|
|Virtus Investment Partners||0||5||0||0||2.00|
Manning & Napier presently has a consensus target price of $4.00, indicating a potential upside of 15.94%. Virtus Investment Partners has a consensus target price of $130.00, indicating a potential upside of 10.50%. Given Manning & Napier’s higher possible upside, analysts clearly believe Manning & Napier is more favorable than Virtus Investment Partners.
This table compares Manning & Napier and Virtus Investment Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Manning & Napier||3.30%||30.20%||18.84%|
|Virtus Investment Partners||11.64%||12.75%||3.21%|
Virtus Investment Partners beats Manning & Napier on 10 of the 14 factors compared between the two stocks.
Manning & Napier Company Profile
Manning & Napier, Inc. is an independent investment management company. The Company operates through investment management industry segment. It provides a range of investment solutions through separately managed accounts, mutual funds and collective investment trust funds, as well as a range of consultative services. It offers equity, fixed income and alternative strategies, as well as a range of blended asset portfolios, such as life cycle funds. It serves a client base of high net worth individuals and institutions, including 401(k) plans, pension plans, Taft-Hartley plans (Taft-Hartley), endowments and foundations. It offers its investment management capabilities through direct sales to high net worth individuals and institutions, as well as through third-party intermediaries, platforms and institutional investment consultants. Its investment management offerings include approximately 40 separate account composites, and over 60 mutual funds and collective investment trusts.
Virtus Investment Partners Company Profile
Virtus Investment Partners, Inc. (Virtus) is a provider of investment management and related services to individuals and institutions. The Company provides its products in various forms and through multiple distribution channels. Its retail products include open-end mutual funds, closed-end funds, exchange traded funds, variable insurance funds, undertakings for collective investments in transferable securities (UCITS) and separately managed accounts. Its open-end mutual funds are distributed through intermediaries. Its closed-end funds trade on the New York Stock Exchange. Its variable insurance funds are available as investment options in variable annuities and life insurance products distributed by life insurance companies. Separately managed accounts consists of intermediary programs, sponsored and distributed by unaffiliated brokerage firms, and private client accounts, which are offered to the high net-worth clients of its affiliated managers.
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