Analyzing OM Asset Management PLC (OMAM) and The Competition

OM Asset Management PLC (NYSE: OMAM) is one of 61 publicly-traded companies in the “Investment Management” industry, but how does it contrast to its peers? We will compare OM Asset Management PLC to related businesses based on the strength of its earnings, analyst recommendations, valuation, risk, profitability, institutional ownership and dividends.

Insider and Institutional Ownership

66.1% of OM Asset Management PLC shares are held by institutional investors. Comparatively, 47.8% of shares of all “Investment Management” companies are held by institutional investors. 1.5% of OM Asset Management PLC shares are held by insiders. Comparatively, 26.8% of shares of all “Investment Management” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for OM Asset Management PLC and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OM Asset Management PLC 0 0 5 0 3.00
OM Asset Management PLC Competitors 650 2086 2129 34 2.32

OM Asset Management PLC currently has a consensus price target of $17.88, indicating a potential upside of 14.14%. As a group, “Investment Management” companies have a potential downside of 1.04%. Given OM Asset Management PLC’s stronger consensus rating and higher probable upside, analysts clearly believe OM Asset Management PLC is more favorable than its peers.

Valuation & Earnings

This table compares OM Asset Management PLC and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
OM Asset Management PLC $772.40 million $173.80 million 19.82
OM Asset Management PLC Competitors $817.53 million $231.65 million -11.02

OM Asset Management PLC’s peers have higher revenue and earnings than OM Asset Management PLC. OM Asset Management PLC is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

OM Asset Management PLC pays an annual dividend of $0.36 per share and has a dividend yield of 2.3%. OM Asset Management PLC pays out 45.6% of its earnings in the form of a dividend. As a group, “Investment Management” companies pay a dividend yield of 3.3% and pay out 65.4% of their earnings in the form of a dividend.

Risk & Volatility

OM Asset Management PLC has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, OM Asset Management PLC’s peers have a beta of 1.42, suggesting that their average share price is 42% more volatile than the S&P 500.

Profitability

This table compares OM Asset Management PLC and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OM Asset Management PLC 12.12% 95.51% 12.52%
OM Asset Management PLC Competitors 29.76% 103.67% 27.30%

Summary

OM Asset Management PLC peers beat OM Asset Management PLC on 8 of the 15 factors compared.

OM Asset Management PLC Company Profile

OM Asset Management plc is a global, diversified, multi-boutique asset management company. As of December 31, 2016, the Company operated its business through its eight Affiliates, each of which operated autonomously and employed its own investment processes. Its Affiliates include Acadian Asset Management LLC; Barrow, Hanley, Mewhinney & Strauss, LLC; Campbell Global, LLC; Copper Rock Capital Partners LLC; Heitman LLC; Investment Counselors of Maryland, LLC; Landmark Partners, LLC, and Thompson, Siegel & Walmsley LLC. It works with boutique asset managers, and the Company leverages the resources within its organization to engage with its Affiliates and provide them with capabilities unavailable to specialist asset management firms. The Company works with its Affiliates to identify and execute upon opportunities for their businesses in areas, such as business line expansion and product development, as well as activities required for the operation of investment boutiques.

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