Comparing Victory Capital (VCTR) and Its Competitors

Victory Capital (NASDAQ:VCTR) is one of 1,744 publicly-traded companies in the “Capital Markets” industry, but how does it weigh in compared to its peers? We will compare Victory Capital to similar companies based on the strength of its institutional ownership, risk, valuation, earnings, dividends, analyst recommendations and profitability.

Dividends

Victory Capital pays an annual dividend of $2.00 per share and has a dividend yield of 1.7%. Victory Capital pays out 36.8% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 30.0% of their earnings in the form of a dividend. Victory Capital has increased its dividend for 6 consecutive years. Victory Capital lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares Victory Capital and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Victory Capital	$1.31 billion	$330.06 million	21.01
Victory Capital Competitors	$5.22 billion	$396.39 million	17.13

Victory Capital’s peers have higher revenue and earnings than Victory Capital. Victory Capital 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.

Volatility and Risk

Victory Capital has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Victory Capital’s peers have a beta of 0.80, indicating that their average stock price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Victory Capital and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victory Capital	0	5	1	1	2.43
Victory Capital Competitors	5540	20102	22433	641	2.37

Victory Capital presently has a consensus price target of $118.67, indicating a potential upside of 3.81%. As a group, “Capital Markets” companies have a potential upside of 25.76%. Given Victory Capital’s peers higher possible upside, analysts plainly believe Victory Capital has less favorable growth aspects than its peers.

Profitability

This table compares Victory Capital and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Victory Capital	29.57%	24.17%	13.77%
Victory Capital Competitors	311.61%	79.26%	3.71%

Institutional & Insider Ownership

87.7% of Victory Capital shares are owned by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are owned by institutional investors. 9.5% of Victory Capital shares are owned by company insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Victory Capital peers beat Victory Capital on 9 of the 15 factors compared.

About Victory Capital

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an asset management company in the United States and internationally. It offers investment advisory, fund administration, fund compliance, fund transfer agent, fund distribution, and other management services. The company provides specialized investment strategies to institutions, intermediaries, retirement platforms, and individual investors. Its investment products include actively and passively managed mutual funds; rules-based and active exchange traded funds; institutional separate accounts; variable insurance products; alternative investments; and private closed-end funds; and a 529 Education Savings Plan. The company also offers strategies through third-party investment products, including mutual funds, third-party ETF model strategies, retail separately managed accounts, unified managed accounts through wrap account programs, Collective Investment Trusts, and undertakings for the collective investment in transferable securities. Victory Capital Holdings, Inc. was incorporated in 2013 and is based in San Antonio, Texas.