Artisan Partners Asset Management (NYSE: APAM) and Pzena Investment Management (NYSE:PZN) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.
Volatility and Risk
Artisan Partners Asset Management has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, Pzena Investment Management has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.
Artisan Partners Asset Management pays an annual dividend of $2.40 per share and has a dividend yield of 8.0%. Pzena Investment Management pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Artisan Partners Asset Management pays out 145.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pzena Investment Management pays out 18.2% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Artisan Partners Asset Management and Pzena Investment Management’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Artisan Partners Asset Management||$745.91 million||2.01||$250.43 million||$1.65||18.24|
|Pzena Investment Management||$122.22 million||1.44||$56.40 million||$0.66||15.33|
Artisan Partners Asset Management has higher revenue and earnings than Pzena Investment Management. Pzena Investment Management is trading at a lower price-to-earnings ratio than Artisan Partners Asset Management, indicating that it is currently the more affordable of the two stocks.
This table compares Artisan Partners Asset Management and Pzena Investment Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Artisan Partners Asset Management||11.37%||78.75%||9.79%|
|Pzena Investment Management||14.82%||12.93%||6.38%|
This is a breakdown of recent recommendations for Artisan Partners Asset Management and Pzena Investment Management, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Artisan Partners Asset Management||1||4||2||0||2.14|
|Pzena Investment Management||0||1||0||0||2.00|
Artisan Partners Asset Management presently has a consensus price target of $29.50, indicating a potential downside of 1.99%. Given Artisan Partners Asset Management’s stronger consensus rating and higher probable upside, research analysts clearly believe Artisan Partners Asset Management is more favorable than Pzena Investment Management.
Institutional & Insider Ownership
96.2% of Artisan Partners Asset Management shares are owned by institutional investors. Comparatively, 16.8% of Pzena Investment Management shares are owned by institutional investors. 30.0% of Artisan Partners Asset Management shares are owned by insiders. Comparatively, 57.4% of Pzena Investment Management shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Artisan Partners Asset Management beats Pzena Investment Management on 13 of the 16 factors compared between the two stocks.
About Artisan Partners Asset Management
Artisan Partners Asset Management Inc. is an investment management company. The Company provides a range of the United States, non-United States and global investment strategies, each of which is managed by one of its investment teams. The Company provides investment management services to separate accounts, mutual funds and other pooled investment vehicles. The Company offers its investment management services primarily to institutions and through intermediaries that operate with institutional-like decision-making processes and have long-term investment horizons. The Company provides clients with multiple equity investment strategies spanning market capitalization segments and investing styles in both the United States and non-United States markets. The Company also offers one fixed income strategy, the Artisan High Income strategy. Each strategy is managed by one of the investment teams.
About Pzena Investment Management
Pzena Investment Management, Inc. is a holding company. The Company is the sole managing member of Pzena Investment Management, LLC. Pzena Investment Management, LLC is an investment management company. The Company also serves as the general partner of Pzena Investment Management, LP. The Company offers institutional investment products to public and corporate pension funds, endowments, foundations and certain commingled vehicles geared toward institutional investors. The Company also offers access to certain of its global and non-United States strategies through private placement vehicles and collective investment trusts. Pzena Investment Management, LLC is its operating company. Pzena Investment Management, LLC consists of Class A and Class B membership units.
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