Critical Review: CI Financial (CIXXF) & The Competition

CI Financial (NYSE:CIXXFGet Rating) is one of 84 public companies in the “Investment advice” industry, but how does it contrast to its peers? We will compare CI Financial to similar companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Risk and Volatility

CI Financial has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, CI Financial’s peers have a beta of 1.16, meaning that their average stock price is 16% more volatile than the S&P 500.

Profitability

This table compares CI Financial and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CI Financial 17.55% 37.42% 6.99%
CI Financial Competitors 30.55% 18.27% 10.40%

Earnings and Valuation

This table compares CI Financial and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CI Financial $2.16 billion $326.60 million 6.84
CI Financial Competitors $3.08 billion $503.37 million 2.59

CI Financial’s peers have higher revenue and earnings than CI Financial. CI Financial is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

34.2% of CI Financial shares are held by institutional investors. Comparatively, 49.1% of shares of all “Investment advice” companies are held by institutional investors. 22.9% of shares of all “Investment advice” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

CI Financial pays an annual dividend of $0.54 per share and has a dividend yield of 4.6%. CI Financial pays out 31.2% of its earnings in the form of a dividend. As a group, “Investment advice” companies pay a dividend yield of 2.8% and pay out 48.4% of their earnings in the form of a dividend. CI Financial is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for CI Financial and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CI Financial 0 0 0 0 N/A
CI Financial Competitors 561 2882 3470 119 2.45

As a group, “Investment advice” companies have a potential upside of 4.37%. Given CI Financial’s peers higher probable upside, analysts plainly believe CI Financial has less favorable growth aspects than its peers.

Summary

CI Financial peers beat CI Financial on 7 of the 12 factors compared.

About CI Financial

(Get Rating)

CI Financial Corp. is an independent company offering global asset management and wealth management advisory services. It operates through the following business segments: Asset Management and Wealth Management. The Asset Management segment provides the majority of CI’s income and derives its revenue principally from the fees earned on the management of investment funds and other fee-earning investment products. The wealth management segment derives its revenues principally from commissions and fees earned through the provision of ongoing services to clients and on the sale of mutual funds and other financial products. The company was founded in 1965 and is headquartered in Toronto, Canada.

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