Gamco Investors (NYSE: GBL) and Janus Capital Group (NYSE:JNS) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.
Volatility and Risk
Gamco Investors has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Janus Capital Group has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Gamco Investors pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Janus Capital Group pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. Gamco Investors pays out 2.2% of its earnings in the form of a dividend. Janus Capital Group pays out 55.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Gamco Investors has raised its dividend for 5 consecutive years and Janus Capital Group has raised its dividend for 6 consecutive years. Janus Capital Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
25.4% of Gamco Investors shares are held by institutional investors. Comparatively, 90.2% of Janus Capital Group shares are held by institutional investors. 79.0% of Gamco Investors shares are held by insiders. Comparatively, 2.1% of Janus Capital Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Gamco Investors and Janus Capital Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Janus Capital Group||12.54%||7.26%||4.48%|
Earnings and Valuation
This table compares Gamco Investors and Janus Capital Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gamco Investors||$361.19 million||2.38||$181.57 million||$3.68||8.10|
|Janus Capital Group||N/A||N/A||N/A||$0.79||17.94|
Gamco Investors has higher revenue and earnings than Janus Capital Group. Gamco Investors is trading at a lower price-to-earnings ratio than Janus Capital Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Gamco Investors and Janus Capital Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Janus Capital Group||1||6||0||0||1.86|
Janus Capital Group has a consensus target price of $14.20, indicating a potential upside of 0.21%. Given Janus Capital Group’s higher probable upside, analysts clearly believe Janus Capital Group is more favorable than Gamco Investors.
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.
About Janus Capital Group
Janus Capital Group Inc. provides investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, separate accounts, other pooled investment vehicles, exchange-traded products (ETPs) and subadvised relationships (collectively referred to as investment products) in both domestic and international markets. The Company operates through investment management business segment. The Company provides investment management solutions across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives. As of December 31, 2016, the Company’s investment products were distributed through three primary channels: intermediary, institutional and self-directed. Each distribution channel focuses on specific investor groups and the requirements of each group.
Receive News & Ratings for Gamco Investors Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Gamco Investors Inc. and related companies with MarketBeat.com's FREE daily email newsletter.