Critical Comparison: Virtus Investment Partners (VRTS) & Calamos Asset Management (CLMS)

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

Dividends

Calamos Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 7.2%. Virtus Investment Partners pays an annual dividend of $1.80 per share and has a dividend yield of 1.7%. 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. Virtus Investment Partners pays out 35.0% of its earnings in the form of a dividend.

Profitability

This table compares Calamos Asset Management and Virtus Investment Partners’ 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%
Virtus Investment Partners 12.13% 11.35% 3.84%

Earnings & Valuation

This table compares Calamos Asset Management and Virtus Investment Partners’ top-line revenue, earnings per share 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
Virtus Investment Partners $336.08 million 2.27 $73.41 million $5.14 20.60

Virtus Investment Partners has higher revenue and earnings than Calamos Asset Management. Virtus Investment Partners 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.

Analyst Recommendations

This is a summary of recent ratings for Calamos Asset Management and Virtus Investment Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calamos Asset Management 0 0 0 0 N/A
Virtus Investment Partners 1 3 0 0 1.75

Virtus Investment Partners has a consensus target price of $121.00, indicating a potential upside of 14.26%. Given Virtus Investment Partners’ higher possible upside, analysts plainly believe Virtus Investment Partners is more favorable than Calamos Asset Management.

Insider and Institutional Ownership

56.5% of Calamos Asset Management shares are owned by institutional investors. Comparatively, 94.5% of Virtus Investment Partners shares are owned by institutional investors. 20.4% of Calamos Asset Management shares are owned by insiders. Comparatively, 4.3% of Virtus Investment Partners shares are owned by 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.

Volatility & Risk

Calamos Asset Management has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Virtus Investment Partners has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.

Summary

Virtus Investment Partners beats Calamos Asset Management on 7 of the 11 factors compared between the two stocks.

About Calamos Asset Management

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.

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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