Head to Head Review: Gamco Investors (NYSE:GBL) vs. Its Competitors

Gamco Investors (NYSE: GBL) is one of 53 publicly-traded companies in the “Investment Management & Fund Operators” industry, but how does it weigh in compared to its rivals? We will compare Gamco Investors to related businesses based on the strength of its dividends, earnings, profitability, valuation, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Gamco Investors and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gamco Investors 26.81% -63.12% 45.24%
Gamco Investors Competitors -230.55% 0.22% 4.70%

Dividends

Gamco Investors pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Gamco Investors pays out 2.5% of its earnings in the form of a dividend. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.3% and pay out 45.2% of their earnings in the form of a dividend. Gamco Investors has increased its dividend for 5 consecutive years.

Risk and Volatility

Gamco Investors has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Gamco Investors’ rivals have a beta of 1.31, indicating that their average share price is 31% more volatile than the S&P 500.

Earnings and Valuation

This table compares Gamco Investors and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Gamco Investors $353.00 million $117.12 million 9.20
Gamco Investors Competitors $6.06 billion $896.42 million 1,034.14

Gamco Investors’ rivals have higher revenue and earnings than Gamco Investors. Gamco Investors is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations and price targets for Gamco Investors and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gamco Investors 0 0 0 0 N/A
Gamco Investors Competitors 239 1626 1814 59 2.45

As a group, “Investment Management & Fund Operators” companies have a potential upside of 8.22%. Given Gamco Investors’ rivals higher possible upside, analysts plainly believe Gamco Investors has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

25.7% of Gamco Investors shares are owned by institutional investors. Comparatively, 62.4% of shares of all “Investment Management & Fund Operators” companies are owned by institutional investors. 80.0% of Gamco Investors shares are owned by company insiders. Comparatively, 10.6% of shares of all “Investment Management & Fund Operators” companies are owned by company 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

Gamco Investors rivals beat Gamco Investors on 8 of the 12 factors compared.

About Gamco Investors

GAMCO Investors, Inc. is a holding company. The Company is a provider of investment advisory services to open and closed-end funds, institutional and private wealth management investors principally in the United States. The Company operates through the investment advisory and asset management business segment. It manages assets on a discretionary basis and invests in securities through various investment styles. Its assets under management are organized into three groups: Institutional and Private Wealth Management; Open and Closed-End Funds, and the GAMCO International SICAV (SICAV). The Company provides advisory services to a range of investors, including corporate retirement plans, foundations, endowments and private wealth clients, and also serves as sub-advisor to third-party investment funds, including registered investment companies. As of December 31, 2016, it had provided advisory services to 21 open-end funds, 15 closed-end funds and one exchange traded managed fund.

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