Virtus Investment Partners (NASDAQ: VRTS) and Invesco (NYSE:IVZ) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Virtus Investment Partners pays an annual dividend of $1.80 per share and has a dividend yield of 1.3%. Invesco pays an annual dividend of $1.20 per share and has a dividend yield of 4.4%. Virtus Investment Partners pays out 23.4% of its earnings in the form of a dividend. Invesco pays out 44.4% 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. Invesco has raised its dividend for 9 consecutive years. Invesco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Virtus Investment Partners and Invesco’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Virtus Investment Partners||$425.61 million||2.26||$37.01 million||$7.68||17.37|
|Invesco||$5.16 billion||2.16||$1.13 billion||$2.70||10.12|
Invesco has higher revenue and earnings than Virtus Investment Partners. Invesco 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 current ratings and target prices for Virtus Investment Partners and Invesco, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Virtus Investment Partners||0||6||1||0||2.14|
Virtus Investment Partners currently has a consensus target price of $136.86, indicating a potential upside of 2.59%. Invesco has a consensus target price of $40.15, indicating a potential upside of 46.98%. Given Invesco’s stronger consensus rating and higher possible upside, analysts plainly believe Invesco is more favorable than Virtus Investment Partners.
This table compares Virtus Investment Partners and Invesco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Virtus Investment Partners||9.96%||15.49%||3.01%|
Insider & Institutional Ownership
89.1% of Virtus Investment Partners shares are owned by institutional investors. Comparatively, 79.7% of Invesco shares are owned by institutional investors. 4.8% of Virtus Investment Partners shares are owned by insiders. Comparatively, 1.8% of Invesco shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
Virtus Investment Partners has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, Invesco has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.
Invesco beats Virtus Investment Partners on 10 of the 17 factors compared between the two stocks.
About Virtus Investment Partners
Virtus Investment Partners, Inc. is a publicly owned investment manager. The firm primarily provides its services to individual and institutional clients. It launches separate client focused equity and fixed income portfolios. The firm launches equity, fixed income, and balanced mutual funds for its clients. It invests in the public equity, fixed income, and real estate markets. The firm also invests in exchange traded funds. It employs a multi manager approach for its products. The firm employs quantitative analysis to make its investments. It benchmarks the performance of its portfolios against the S&P 500 Index. The firm conducts in-house research to make its investments. Virtus Investment Partners, Inc. was founded in 1988 and is based in Hartford, Connecticut.
Invesco Ltd. is a publicly owned investment manager. The firm provides its services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds. It manages separate client-focused equity and fixed income portfolios. The firm also launches equity, fixed income, commodity, multi-asset, and balanced mutual funds for its clients. It launches equity, fixed income, multi-asset, and balanced exchange-traded funds. The firm also launches and manages private funds. It invests in the public equity and fixed income markets across the globe. The firm also invests in alternative markets, such as commodities and currencies. For the equity portion of its portfolio, it invests in growth and value stocks of large-cap, mid-cap, and small-cap companies. For the fixed income portion of its portfolio, the firm invests in convertibles, government bonds, municipal bonds, treasury securities, and cash. It also invests in short term and intermediate term bonds, investment grade and high yield bonds, taxable and tax-free bonds, senior secured loans, and structured securities such as asset-backed securities, mortgage-backed securities, and commercial mortgage-backed securities. The firm employs absolute return, global macro, and long/short strategies. It employs quantitative analysis to make its investments. The firm was formerly known as Invesco Plc, AMVESCAP plc, Amvesco plc, Invesco PLC, Invesco MIM, and H. Lotery & Co. Ltd. Invesco Ltd. was founded in December 1935 and is based in Atlanta, Georgia with an additional office in Hamilton, Bermuda.
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