Och-Ziff Capital Management Group (NYSE:OZM) and Victory Capital (NASDAQ:VCTR) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Valuation and Earnings

This table compares Och-Ziff Capital Management Group and Victory Capital’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Och-Ziff Capital Management Group $858.34 million 0.70 $21.07 million $0.51 2.39
Victory Capital $409.63 million 1.24 $25.82 million $1.25 6.00

Victory Capital has lower revenue, but higher earnings than Och-Ziff Capital Management Group. Och-Ziff Capital Management Group is trading at a lower price-to-earnings ratio than Victory Capital, indicating that it is currently the more affordable of the two stocks.

Dividends

Och-Ziff Capital Management Group pays an annual dividend of $0.08 per share and has a dividend yield of 6.6%. Victory Capital does not pay a dividend. Och-Ziff Capital Management Group pays out 15.7% of its earnings in the form of a dividend.

Profitability

This table compares Och-Ziff Capital Management Group and Victory Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Och-Ziff Capital Management Group 0.44% -341.23% 15.98%
Victory Capital N/A N/A N/A

Institutional and Insider Ownership

16.1% of Och-Ziff Capital Management Group shares are held by institutional investors. Comparatively, 16.2% of Victory Capital shares are held by institutional investors. 62.3% of Och-Ziff Capital Management Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Och-Ziff Capital Management Group and Victory Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Och-Ziff Capital Management Group 0 1 1 0 2.50
Victory Capital 0 2 7 0 2.78

Och-Ziff Capital Management Group presently has a consensus price target of $4.50, indicating a potential upside of 268.85%. Victory Capital has a consensus price target of $13.81, indicating a potential upside of 84.17%. Given Och-Ziff Capital Management Group’s higher probable upside, equities research analysts clearly believe Och-Ziff Capital Management Group is more favorable than Victory Capital.

Summary

Victory Capital beats Och-Ziff Capital Management Group on 8 of the 14 factors compared between the two stocks.

Och-Ziff Capital Management Group Company Profile

Och-Ziff Capital Management Group LLC is a publicly owned hedge fund sponsor. The firm provides investment advisory services for its clients. It primarily caters to institutional investors which include pension funds, fund-of-funds, foundations and endowments, corporations and other institutions, private banks and family offices. The firm invests in equity and alternative markets across the world. It employs quantitative and qualitative analysis to make its investments. For its multi-strategy portfolios, the firm employs strategies like convertible and derivative arbitrage, corporate credit, long/short equity special situations, buyout investments, merger arbitrage, private investments, and structured credit. It also invests in real estate and traditional real estate assets including multifamily, office, hotel and retail, loans, portfolio acquisitions, loan pools, operating companies, structured debt products, public securities, and non-traditional real estate assets including gaming, distressed land and residential, cell towers, parking, golf, debt and senior housing. For private equity investments, it considers investments in a variety of special situations that seek to realize value through strategic sales or initial public offerings. The firm typically invests in the energy investments. It prefers to invest in United States. It also manages a buyout fund, Och-Ziff Energy Fund. Och-Ziff Capital Management Group LLC was founded in 1994 and is based New York City with additional offices in Houston, Texas, London, United Kingdom, Hong Kong, Tokyo, Japan, Bangalore, India, Singapore, and Beijing, China.

Victory Capital Company Profile

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an independent investment management company in the United States. It offers investment advisory, fund administration, and distribution services through broker-dealers, retirement platforms, and registered investment advisor networks. As of September 30, 2017, its franchises and solutions platform managed a set of 70 investment strategies for a range of institutional and retail clients. The company was founded in 2013 and is based in Brooklyn, Ohio.

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