Sound Point Meridian Capital (NYSE:SPMC) vs. Victory Capital (NASDAQ:VCTR) Head to Head Contrast

Sound Point Meridian Capital (NYSE:SPMC) and Victory Capital (NASDAQ:VCTR) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Risk & Volatility

Sound Point Meridian Capital has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500. Comparatively, Victory Capital has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Institutional and Insider Ownership

87.7% of Victory Capital shares are held by institutional investors. 9.4% of Victory Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Sound Point Meridian Capital and Victory Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Point Meridian Capital	N/A	N/A	N/A	$1.42	12.21
Victory Capital	$1.03 billion	4.27	$288.86 million	$4.05	16.23

Victory Capital has higher revenue and earnings than Sound Point Meridian Capital. Sound Point Meridian Capital is trading at a lower price-to-earnings ratio than Victory Capital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sound Point Meridian Capital and Victory Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sound Point Meridian Capital	N/A	N/A	N/A
Victory Capital	27.18%	26.46%	13.03%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sound Point Meridian Capital and Victory Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Point Meridian Capital	0	1	1	1	3.00
Victory Capital	0	4	5	0	2.56

Sound Point Meridian Capital currently has a consensus target price of $21.25, suggesting a potential upside of 22.51%. Victory Capital has a consensus target price of $74.11, suggesting a potential upside of 12.73%. Given Sound Point Meridian Capital’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sound Point Meridian Capital is more favorable than Victory Capital.

Dividends

Sound Point Meridian Capital pays an annual dividend of $3.00 per share and has a dividend yield of 17.3%. Victory Capital pays an annual dividend of $1.96 per share and has a dividend yield of 3.0%. Sound Point Meridian Capital pays out 211.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Victory Capital pays out 48.4% of its earnings in the form of a dividend. Victory Capital has increased its dividend for 6 consecutive years.

Summary

Victory Capital beats Sound Point Meridian Capital on 12 of the 16 factors compared between the two stocks.

About Sound Point Meridian Capital

Sound Point Meridian Capital Inc. is an externally managed, non-diversified closed-end management investment company. Its investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation equity and mezzanine tranches. Sound Point Meridian Capital Inc. is based in NEW YORK.

About Victory Capital

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an asset management company in the United States and internationally. It offers investment advisory, fund administration, fund compliance, fund transfer agent, fund distribution, and other management services. The company provides specialized investment strategies to institutions, intermediaries, retirement platforms, and individual investors. Its investment products include actively and passively managed mutual funds; rules-based and active exchange traded funds; institutional separate accounts; variable insurance products; alternative investments; and private closed-end funds; and a 529 Education Savings Plan. The company also offers strategies through third-party investment products, including mutual funds, third-party ETF model strategies, retail separately managed accounts, unified managed accounts through wrap account programs, Collective Investment Trusts, and undertakings for the collective investment in transferable securities. Victory Capital Holdings, Inc. was incorporated in 2013 and is based in San Antonio, Texas.