Pzena Investment Management (NYSE:PZN) and BKF Capital Group (OTCMKTS:BKFG) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings for Pzena Investment Management and BKF Capital Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pzena Investment Management 0 0 0 0 N/A
BKF Capital Group 0 0 0 0 N/A

Insider and Institutional Ownership

16.9% of Pzena Investment Management shares are owned by institutional investors. Comparatively, 4.0% of BKF Capital Group shares are owned by institutional investors. 50.5% of Pzena Investment Management shares are owned by insiders. Comparatively, 10.9% of BKF Capital Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Pzena Investment Management and BKF Capital Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pzena Investment Management 6.54% 16.00% 9.43%
BKF Capital Group N/A N/A N/A

Risk and Volatility

Pzena Investment Management has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, BKF Capital Group has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Dividends

Pzena Investment Management pays an annual dividend of $0.12 per share and has a dividend yield of 1.3%. BKF Capital Group does not pay a dividend. Pzena Investment Management pays out 19.0% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Pzena Investment Management and BKF Capital Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pzena Investment Management $141.29 million 4.58 $6.90 million $0.63 14.83
BKF Capital Group N/A N/A -$600,000.00 N/A N/A

Pzena Investment Management has higher revenue and earnings than BKF Capital Group.

Summary

Pzena Investment Management beats BKF Capital Group on 9 of the 10 factors compared between the two stocks.

About Pzena Investment Management

Pzena Investment Management, Inc. is a publicly owned investment manager. The firm manages equity mutual funds for its clients. It invests in the public equity markets. Pzena Investment Management, Inc. was founded in 2007 and is based in New York City with additional offices in Melbourne, Australia and London, United Kingdom.

About BKF Capital Group

BKF Capital Group, Inc. does not have significant operations. It intends to operate as a merchant bank providing capital to companies primarily in the form of share ownership, as well as advisory services on corporate matters to the firms in which the company invests, including mergers and acquisitions, investment banking, and general operations and financial management. The company was founded in 1907 and is based in Westlake Village, California.

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