Barings Corporate Investors (NYSE:MCI) and Invesco (NYSE:IVZ) Head to Head Review

Invesco (NYSE:IVZ) and Barings Corporate Investors (NYSE:MCI) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Invesco and Barings Corporate Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invesco	0	13	5	0	2.28
Barings Corporate Investors	0	0	0	0	0.00

Invesco currently has a consensus target price of $24.70, indicating a potential downside of 13.37%. Given Invesco’s stronger consensus rating and higher probable upside, analysts plainly believe Invesco is more favorable than Barings Corporate Investors.

Earnings and Valuation

This table compares Invesco and Barings Corporate Investors”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invesco	$6.07 billion	2.09	$774.80 million	$1.47	19.40
Barings Corporate Investors	N/A	N/A	N/A	N/A	N/A

Invesco has higher revenue and earnings than Barings Corporate Investors.

Profitability

This table compares Invesco and Barings Corporate Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invesco	14.15%	9.11%	3.69%
Barings Corporate Investors	N/A	N/A	N/A

Volatility and Risk

Invesco has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, Barings Corporate Investors has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Dividends

Invesco pays an annual dividend of $0.84 per share and has a dividend yield of 2.9%. Barings Corporate Investors pays an annual dividend of $1.60 per share and has a dividend yield of 8.4%. Invesco pays out 57.1% of its earnings in the form of a dividend. Invesco has increased its dividend for 5 consecutive years.

Insider and Institutional Ownership

66.1% of Invesco shares are owned by institutional investors. 1.2% of Invesco shares are owned by insiders. Comparatively, 1.1% of Barings Corporate Investors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Invesco beats Barings Corporate Investors on 11 of the 13 factors compared between the two stocks.

About Invesco

Invesco Ltd. is a publicly owned investment manager. The firm provides its services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds. It manages separate client-focused equity and fixed income portfolios. The firm also launches equity, fixed income, commodity, multi-asset, and balanced mutual funds for its clients. It launches equity, fixed income, multi-asset, and balanced exchange-traded funds. The firm also launches and manages private funds. It invests in the public equity and fixed income markets across the globe. The firm also invests in alternative markets, such as commodities and currencies. For the equity portion of its portfolio, it invests in growth and value stocks of large-cap, mid-cap, and small-cap companies. For the fixed income portion of its portfolio, the firm invests in convertibles, government bonds, municipal bonds, treasury securities, and cash. It also invests in short term and intermediate term bonds, investment grade and high yield bonds, taxable and tax-free bonds, senior secured loans, and structured securities such as asset-backed securities, mortgage-backed securities, and commercial mortgage-backed securities. The firm employs absolute return, global macro, and long/short strategies. It employs quantitative analysis to make its investments. The firm was formerly known as Invesco Plc, AMVESCAP plc, Amvesco plc, Invesco PLC, Invesco MIM, and H. Lotery & Co. Ltd. Invesco Ltd. was founded in 1935 and is based in Atlanta, Georgia with an additional office in Hamilton, Bermuda.

About Barings Corporate Investors

Babson Capital Corporate Investors trust is a closed ended fixed income mutual fund launched and managed by Barings LLC. It invests in fixed income markets of the United States. The fund seeks to invest in securities of companies operating across diversified sectors. It primarily invests in a portfolio of privately placed, below-investment grade, long term corporate debt obligations. The fund also invests in marketable investment grade debt securities, other marketable debt securities, and marketable common stocks. It was formerly known as Babson Capital Corporate Investors. Babson Capital Corporate Investors trust was formed in 1971 and is domiciled in the United States.