Pzena Investment Management (NYSE: PZN) and Eaton Vance Corp (NYSE:EV) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitabiliy, valuation and dividends.
Valuation & Earnings
This table compares Pzena Investment Management and Eaton Vance Corp’s gross revenue, earnings per share (EPS) and valuation.
Eaton Vance Corp has higher revenue and earnings than Pzena Investment Management. Pzena Investment Management is trading at a lower price-to-earnings ratio than Eaton Vance Corp, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Pzena Investment Management has a beta of 2.07, suggesting that its share price is 107% more volatile than the S&P 500. Comparatively, Eaton Vance Corp has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.
Pzena Investment Management pays an annual dividend of $0.12 per share and has a dividend yield of 1.4%. Eaton Vance Corp pays an annual dividend of $1.12 per share and has a dividend yield of 2.3%. Pzena Investment Management pays out 20.7% of its earnings in the form of a dividend. Eaton Vance Corp pays out 53.3% 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. Pzena Investment Management has raised its dividend for 36 consecutive years.
This is a summary of current ratings and target prices for Pzena Investment Management and Eaton Vance Corp, as reported by MarketBeat.
Eaton Vance Corp has a consensus target price of $47.08, suggesting a potential downside of 2.66%. Given Eaton Vance Corp’s higher probable upside, analysts plainly believe Eaton Vance Corp is more favorable than Pzena Investment Management.
Insider & Institutional Ownership
15.6% of Pzena Investment Management shares are held by institutional investors. Comparatively, 70.3% of Eaton Vance Corp shares are held by institutional investors. 57.4% of Pzena Investment Management shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Pzena Investment Management and Eaton Vance Corp’s net margins, return on equity and return on assets.
Eaton Vance Corp beats Pzena Investment Management on 12 of the 16 factors compared between the two stocks.
Pzena Investment Management Company Profile
Pzena Investment Management, Inc. is a holding company. The Company is the sole managing member of Pzena Investment Management, LLC. Pzena Investment Management, LLC is an investment management company. The Company also serves as the general partner of Pzena Investment Management, LP. The Company offers institutional investment products to public and corporate pension funds, endowments, foundations and certain commingled vehicles geared toward institutional investors. The Company also offers access to certain of its global and non-United States strategies through private placement vehicles and collective investment trusts. Pzena Investment Management, LLC is its operating company. Pzena Investment Management, LLC consists of Class A and Class B membership units.
Eaton Vance Corp Company Profile
Eaton Vance Corp. is engaged in the business of managing investment funds and providing investment management and advisory services to high-net-worth individuals and institutions. The Company operates as an investment advisor to funds and separate accounts. The Company, through its subsidiaries and other affiliates, manages active equity, income and alternative strategies across a range of investment styles and asset classes, including the United States and global equities, floating-rate bank loans, municipal bonds, global income, high-yield and investment grade bonds. Through its subsidiary, the Company also manages a range of engineered alpha strategies, including systematic equity, systematic alternatives and managed options strategies. The Company’s open-end fund lineup includes tax-managed equity funds, and non-tax-managed equity and multi-asset funds. The Company’s family of closed-end funds includes municipal bond, domestic and global equity, and bank loan.