Calamos Asset Management (CLMS) and Pzena Investment Management (PZN) Critical Review

Calamos Asset Management (NASDAQ: CLMS) and Pzena Investment Management (NYSE:PZN) are both financials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Profitability

This table compares Calamos Asset Management and Pzena Investment Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Calamos Asset Management 58.85% 2.51% 13.51%
Pzena Investment Management 14.82% 12.93% 6.38%

Analyst Ratings

This is a breakdown of current ratings for Calamos Asset Management and Pzena Investment Management, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calamos Asset Management 0 0 0 0 N/A
Pzena Investment Management 0 1 0 0 2.00

Valuation & Earnings

This table compares Calamos Asset Management and Pzena Investment Management’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Calamos Asset Management N/A N/A N/A $0.05 165.60
Pzena Investment Management $122.22 million 1.44 $56.40 million $0.66 15.33

Pzena Investment Management has higher revenue and earnings than Calamos Asset Management. Pzena Investment Management is trading at a lower price-to-earnings ratio than Calamos Asset Management, indicating that it is currently the more affordable of the two stocks.

Dividends

Calamos Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 7.2%. Pzena Investment Management pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Calamos Asset Management pays out 1,200.0% 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.

Volatility & Risk

Calamos Asset Management has a beta of 1.14, indicating that its stock price is 14% 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.

Insider and Institutional Ownership

56.5% of Calamos Asset Management shares are held by institutional investors. Comparatively, 16.8% of Pzena Investment Management shares are held by institutional investors. 20.4% of Calamos Asset Management shares are held by company insiders. Comparatively, 57.4% of Pzena Investment Management shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Pzena Investment Management beats Calamos Asset Management on 6 of the 10 factors compared between the two stocks.

Calamos Asset Management Company Profile

Calamos Asset Management, Inc. is a holding company. The Company is the manager of Calamos Investments LLC, which owns and manages its operating companies. The Company provides investment advisory services to individuals and institutional investors through investment products that include open-end and closed-end funds (Funds), an exchange traded fund, separate accounts, offshore funds and partnerships. The subsidiaries through which the Company provides these services include Calamos Advisors LLC (CAL), an investment advisor; Calamos Financial Services LLC (CFS), a broker-dealer; Calamos Wealth Management LLC, an investment advisor, and Calamos Investments LLP, a United Kingdom-based investment advisor, and a distributor of the offshore funds and Company products.

Pzena Investment Management Company Profile

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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