Victory Capital (NASDAQ:VCTR) and Invesco (NYSE:IVZ) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.
Institutional and Insider Ownership
15.8% of Victory Capital shares are owned by institutional investors. Comparatively, 79.7% of Invesco shares are owned by institutional investors. 1.8% of Invesco shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Victory Capital and Invesco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Invesco pays an annual dividend of $1.20 per share and has a dividend yield of 6.5%. Victory Capital does not pay a dividend. Invesco pays out 49.4% of its earnings in the form of a dividend. Invesco has increased its dividend for 10 consecutive years.
This is a summary of current ratings and recommmendations for Victory Capital and Invesco, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Victory Capital presently has a consensus target price of $13.69, suggesting a potential upside of 18.40%. Invesco has a consensus target price of $23.70, suggesting a potential upside of 28.32%. Given Invesco’s higher probable upside, analysts plainly believe Invesco is more favorable than Victory Capital.
Earnings & Valuation
This table compares Victory Capital and Invesco’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Victory Capital||$413.41 million||1.89||$63.70 million||$1.46||7.92|
|Invesco||$5.31 billion||1.43||$882.80 million||$2.43||7.60|
Invesco has higher revenue and earnings than Victory Capital. Invesco is trading at a lower price-to-earnings ratio than Victory Capital, indicating that it is currently the more affordable of the two stocks.
Invesco beats Victory Capital on 9 of the 16 factors compared between the two stocks.
About Victory Capital
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.
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.
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