Invesco (NYSE: IVZ) and Medley Management (NYSE:MDLY) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Dividends

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Invesco pays an annual dividend of $1.16 per share and has a dividend yield of 3.7%. Medley Management pays an annual dividend of $0.80 per share and has a dividend yield of 14.5%. Invesco pays out 43.0% of its earnings in the form of a dividend. Invesco has increased its dividend for 9 consecutive years.

Earnings & Valuation

This table compares Invesco and Medley Management’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Invesco $5.16 billion 2.47 $1.13 billion $2.70 11.57
Medley Management $65.56 million 0.46 $920,000.00 N/A N/A

Invesco has higher revenue and earnings than Medley Management.

Volatility and Risk

Invesco has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Medley Management has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Invesco and Medley Management, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invesco 0 5 8 0 2.62
Medley Management 0 2 0 0 2.00

Invesco currently has a consensus target price of $40.46, indicating a potential upside of 29.48%. Medley Management has a consensus target price of $9.00, indicating a potential upside of 63.64%. Given Medley Management’s higher possible upside, analysts clearly believe Medley Management is more favorable than Invesco.

Insider and Institutional Ownership

82.4% of Invesco shares are owned by institutional investors. Comparatively, 63.3% of Medley Management shares are owned by institutional investors. 1.8% of Invesco shares are owned by company insiders. Comparatively, 5.1% of Medley Management shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Invesco and Medley Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Invesco 21.85% 13.20% 3.78%
Medley Management 1.41% -24.04% 11.05%

Summary

Invesco beats Medley Management on 10 of the 16 factors compared between the two stocks.

About Invesco

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.

About Medley Management

Medley Management Inc. is an investment holding company and operate and control all of the business and affairs of Medley LLC and its subsidiaries. Medley Management Inc. was incorporated on June 13, 2014 and is based in New York, New York.

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