Critical Review: Calamos Asset Management (CLMS) versus Eaton Vance Corporation (EV)
Calamos Asset Management (NASDAQ: CLMS) and Eaton Vance Corporation (NYSE:EV) are both investment management companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Institutional and Insider Ownership
56.5% of Calamos Asset Management shares are owned by institutional investors. Comparatively, 69.2% of Eaton Vance Corporation shares are owned by institutional investors. 20.4% of Calamos Asset Management shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Calamos Asset Management has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Eaton Vance Corporation has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.
Valuation and Earnings
This table compares Calamos Asset Management and Eaton Vance Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Calamos Asset Management||N/A||N/A||N/A||$0.05||165.60|
|Eaton Vance Corporation||$1.34 billion||4.44||$241.30 million||$2.30||22.31|
Eaton Vance Corporation has higher revenue and earnings than Calamos Asset Management. Eaton Vance Corporation is trading at a lower price-to-earnings ratio than Calamos Asset Management, indicating that it is currently the more affordable of the two stocks.
This table compares Calamos Asset Management and Eaton Vance Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Calamos Asset Management||58.85%||2.51%||13.51%|
|Eaton Vance Corporation||18.03%||34.47%||13.99%|
Calamos Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 7.2%. Eaton Vance Corporation pays an annual dividend of $1.24 per share and has a dividend yield of 2.4%. Calamos Asset Management pays out 1,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eaton Vance Corporation pays out 53.9% of its earnings in the form of a dividend. Eaton Vance Corporation has increased its dividend for 36 consecutive years.
This is a breakdown of current ratings and price targets for Calamos Asset Management and Eaton Vance Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Calamos Asset Management||0||0||0||0||N/A|
|Eaton Vance Corporation||0||5||2||0||2.29|
Eaton Vance Corporation has a consensus price target of $51.36, suggesting a potential upside of 0.09%. Given Eaton Vance Corporation’s higher probable upside, analysts plainly believe Eaton Vance Corporation is more favorable than Calamos Asset Management.
Eaton Vance Corporation beats Calamos Asset Management on 10 of the 13 factors compared between the two stocks.
Calamos Asset Management Company Profile
Calamos Asset Management, Inc. is a holding company. The Company is the manager of Calamos Investments LLC, which owns and manages its operating companies. The Company provides investment advisory services to individuals and institutional investors through investment products that include open-end and closed-end funds (Funds), an exchange traded fund, separate accounts, offshore funds and partnerships. The subsidiaries through which the Company provides these services include Calamos Advisors LLC (CAL), an investment advisor; Calamos Financial Services LLC (CFS), a broker-dealer; Calamos Wealth Management LLC, an investment advisor, and Calamos Investments LLP, a United Kingdom-based investment advisor, and a distributor of the offshore funds and Company products.
Eaton Vance Corporation 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.
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