Manning and Napier (MN) vs. Virtus Investment Partners (VRTS) Critical Analysis

Manning and Napier (NYSE: MN) and Virtus Investment Partners (NASDAQ:VRTS) are both small-cap financials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for Manning and Napier and Virtus Investment Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manning and Napier 0 2 0 0 2.00
Virtus Investment Partners 0 7 0 0 2.00

Manning and Napier presently has a consensus price target of $4.00, indicating a potential upside of 5.26%. Virtus Investment Partners has a consensus price target of $130.29, indicating a potential downside of 0.85%. Given Manning and Napier’s higher probable upside, analysts clearly believe Manning and Napier is more favorable than Virtus Investment Partners.

Institutional & Insider Ownership

51.2% of Manning and Napier shares are held by institutional investors. Comparatively, 95.8% of Virtus Investment Partners shares are held by institutional investors. 2.5% of Manning and Napier shares are held by company insiders. Comparatively, 4.0% of Virtus Investment Partners shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Manning and Napier and Virtus Investment Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manning and Napier $248.94 million 0.23 $9.27 million $0.23 16.52
Virtus Investment Partners $322.55 million 2.92 $48.50 million $5.36 24.51

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

Dividends

Manning and Napier pays an annual dividend of $0.32 per share and has a dividend yield of 8.4%. Virtus Investment Partners pays an annual dividend of $1.80 per share and has a dividend yield of 1.4%. Manning and Napier pays out 139.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Virtus Investment Partners pays out 33.6% of its earnings in the form of a dividend.

Volatility & Risk

Manning and Napier has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Virtus Investment Partners has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Manning and Napier 3.30% 30.20% 18.84%
Virtus Investment Partners 11.64% 12.75% 3.21%

Summary

Virtus Investment Partners beats Manning and Napier on 10 of the 14 factors compared between the two stocks.

About Manning and Napier

Manning & Napier, Inc. is an independent investment management company. The Company operates through investment management industry segment. It provides a range of investment solutions through separately managed accounts, mutual funds and collective investment trust funds, as well as a range of consultative services. It offers equity, fixed income and alternative strategies, as well as a range of blended asset portfolios, such as life cycle funds. It serves a client base of high net worth individuals and institutions, including 401(k) plans, pension plans, Taft-Hartley plans (Taft-Hartley), endowments and foundations. It offers its investment management capabilities through direct sales to high net worth individuals and institutions, as well as through third-party intermediaries, platforms and institutional investment consultants. Its investment management offerings include approximately 40 separate account composites, and over 60 mutual funds and collective investment trusts.

About Virtus Investment Partners

Virtus Investment Partners, Inc. (Virtus) is a provider of investment management and related services to individuals and institutions. The Company provides its products in various forms and through multiple distribution channels. Its retail products include open-end mutual funds, closed-end funds, exchange traded funds, variable insurance funds, undertakings for collective investments in transferable securities (UCITS) and separately managed accounts. Its open-end mutual funds are distributed through intermediaries. Its closed-end funds trade on the New York Stock Exchange. Its variable insurance funds are available as investment options in variable annuities and life insurance products distributed by life insurance companies. Separately managed accounts consists of intermediary programs, sponsored and distributed by unaffiliated brokerage firms, and private client accounts, which are offered to the high net-worth clients of its affiliated managers.

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