Head to Head Review: Medley Management (MDLY) versus OM Asset Management PLC (OMAM)
Medley Management (NYSE: MDLY) and OM Asset Management PLC (NYSE:OMAM) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.
This table compares Medley Management and OM Asset Management PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|OM Asset Management PLC||12.12%||95.51%||12.52%|
Volatility & Risk
Medley Management has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, OM Asset Management PLC has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.
Earnings & Valuation
This table compares Medley Management and OM Asset Management PLC’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Medley Management||$67.57 million||0.48||$27.69 million||$0.19||32.11|
|OM Asset Management PLC||$772.40 million||1.98||$173.80 million||$0.79||17.67|
OM Asset Management PLC has higher revenue and earnings than Medley Management. OM Asset Management PLC is trading at a lower price-to-earnings ratio than Medley Management, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
65.6% of Medley Management shares are owned by institutional investors. Comparatively, 66.0% of OM Asset Management PLC shares are owned by institutional investors. 5.1% of Medley Management shares are owned by insiders. Comparatively, 1.5% of OM Asset Management PLC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Medley Management and OM Asset Management PLC, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|OM Asset Management PLC||0||0||6||0||3.00|
Medley Management currently has a consensus price target of $9.75, suggesting a potential upside of 59.84%. OM Asset Management PLC has a consensus price target of $17.88, suggesting a potential upside of 28.04%. Given Medley Management’s higher possible upside, research analysts clearly believe Medley Management is more favorable than OM Asset Management PLC.
Medley Management pays an annual dividend of $0.80 per share and has a dividend yield of 13.1%. OM Asset Management PLC pays an annual dividend of $0.36 per share and has a dividend yield of 2.6%. Medley Management pays out 421.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. OM Asset Management PLC pays out 45.6% of its earnings in the form of a dividend.
OM Asset Management PLC beats Medley Management on 11 of the 16 factors compared between the two stocks.
About Medley Management
Medley Management Inc. is an asset management firm offering yield solutions to retail and institutional investors. The Company operates in the investment management segment. It is focused on credit-related investment strategies, primarily originating senior secured loans to private middle market companies in the United States. The Company generally holds these loans to maturity. Its national direct origination franchise provides capital to the middle market in the United States. The Company has over $4.8 billion of assets under management (AUM) in approximately two business development companies (BDCs), Medley Capital Corporation (MCC) and Sierra Income Corporation (SIC), as well as private investment vehicles. It has over $5 billion of AUM. The Company provides capital to over 300 companies across approximately 35 industries in North America. The Company’s long-dated private funds include MOF I, MOF II and MOF III. Its private funds are managed through partnership structures
About OM Asset Management PLC
OM Asset Management plc is a global, diversified, multi-boutique asset management company. As of December 31, 2016, the Company operated its business through its eight Affiliates, each of which operated autonomously and employed its own investment processes. Its Affiliates include Acadian Asset Management LLC; Barrow, Hanley, Mewhinney & Strauss, LLC; Campbell Global, LLC; Copper Rock Capital Partners LLC; Heitman LLC; Investment Counselors of Maryland, LLC; Landmark Partners, LLC, and Thompson, Siegel & Walmsley LLC. It works with boutique asset managers, and the Company leverages the resources within its organization to engage with its Affiliates and provide them with capabilities unavailable to specialist asset management firms. The Company works with its Affiliates to identify and execute upon opportunities for their businesses in areas, such as business line expansion and product development, as well as activities required for the operation of investment boutiques.
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