Noah (NYSE:NOAH) and Virtus Investment Partners (NASDAQ:VRTS) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares Noah and Virtus Investment Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noah 25.60% 16.27% 11.99%
Virtus Investment Partners 14.55% 19.05% 3.71%

Dividends

Virtus Investment Partners pays an annual dividend of $2.20 per share and has a dividend yield of 2.6%. Noah does not pay a dividend. Virtus Investment Partners pays out 28.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and price targets for Noah and Virtus Investment Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noah 0 0 3 0 3.00
Virtus Investment Partners 0 5 1 0 2.17

Noah currently has a consensus target price of $58.00, indicating a potential upside of 24.84%. Virtus Investment Partners has a consensus target price of $124.33, indicating a potential upside of 49.37%. Given Virtus Investment Partners’ higher probable upside, analysts plainly believe Virtus Investment Partners is more favorable than Noah.

Valuation & Earnings

This table compares Noah and Virtus Investment Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Noah $434.49 million 6.14 $117.26 million $2.01 23.11
Virtus Investment Partners $425.61 million 1.40 $37.01 million $7.68 10.84

Noah has higher revenue and earnings than Virtus Investment Partners. Virtus Investment Partners is trading at a lower price-to-earnings ratio than Noah, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Noah has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500. Comparatively, Virtus Investment Partners has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Insider & Institutional Ownership

50.7% of Noah shares are held by institutional investors. Comparatively, 93.1% of Virtus Investment Partners shares are held by institutional investors. 4.8% of Virtus Investment Partners shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Noah beats Virtus Investment Partners on 10 of the 16 factors compared between the two stocks.

Noah Company Profile

Noah Holdings Limited, through its subsidiaries, operates as a wealth and asset management service provider with focus on wealth investment and asset allocation services for high net worth individuals and enterprises in the People's Republic of China. The company operates through three segments: Wealth Management, Asset Management, and Other Financial Service. It offers onshore and offshore fixed income, private equity, secondary market equity, and insurance products; and value-added financial and related services, such as investor education, corporate registration and tax planning, trust, financial leasing, and philanthropy. The company also provides private equity, real estate, secondary market equity, credit, and other investments; and online wealth management, lending, and payment technology services. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

Virtus Investment Partners Company Profile

Virtus Investment Partners, Inc. is a publicly owned investment manager. The firm primarily provides its services to individual and institutional clients. It launches separate client focused equity and fixed income portfolios. The firm launches equity, fixed income, and balanced mutual funds for its clients. It invests in the public equity, fixed income, and real estate markets. The firm also invests in exchange traded funds. It employs a multi manager approach for its products. The firm employs quantitative analysis to make its investments. It benchmarks the performance of its portfolios against the S&P 500 Index. The firm conducts in-house research to make its investments. Virtus Investment Partners, Inc. was founded in 1988 and is based in Hartford, Connecticut.

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