Comparing Invesco PLC (IVZ) & Och-Ziff Capital Management Group (OZM)

Invesco PLC (NYSE: IVZ) and Och-Ziff Capital Management Group (NYSE:OZM) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitabiliy, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for Invesco PLC and Och-Ziff Capital Management Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invesco PLC	0	2	9	1	2.92
Och-Ziff Capital Management Group	0	6	1	0	2.14

Invesco PLC presently has a consensus target price of $37.14, suggesting a potential upside of 7.42%. Och-Ziff Capital Management Group has a consensus target price of $3.50, suggesting a potential upside of 21.53%. Given Och-Ziff Capital Management Group’s higher possible upside, analysts plainly believe Och-Ziff Capital Management Group is more favorable than Invesco PLC.

Dividends

Invesco PLC pays an annual dividend of $1.16 per share and has a dividend yield of 3.4%. Och-Ziff Capital Management Group pays an annual dividend of $0.08 per share and has a dividend yield of 2.8%. Invesco PLC pays out 52.0% of its earnings in the form of a dividend. Och-Ziff Capital Management Group pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Invesco PLC has increased its dividend for 8 consecutive years. Invesco PLC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

79.8% of Invesco PLC shares are held by institutional investors. Comparatively, 53.4% of Och-Ziff Capital Management Group shares are held by institutional investors. 1.8% of Invesco PLC shares are held by company insiders. Comparatively, 60.3% of Och-Ziff Capital Management Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Invesco PLC and Och-Ziff Capital Management Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Invesco PLC	$4.84 billion	2.91	$1.37 billion	$2.23	15.50
Och-Ziff Capital Management Group	$717.46 million	0.74	$112.01 million	$0.10	28.80

Invesco PLC has higher revenue and earnings than Och-Ziff Capital Management Group. Invesco PLC is trading at a lower price-to-earnings ratio than Och-Ziff Capital Management Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Invesco PLC has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500. Comparatively, Och-Ziff Capital Management Group has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Profitability

This table compares Invesco PLC and Och-Ziff Capital Management Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invesco PLC	18.98%	12.74%	3.82%
Och-Ziff Capital Management Group	4.46%	-55.73%	10.42%

Summary

Invesco PLC beats Och-Ziff Capital Management Group on 14 of the 18 factors compared between the two stocks.

About Invesco PLC

Invesco Ltd. (Invesco) is an independent investment management company. The Company provides a range of investment capabilities and outcomes, which are delivered through a set of investment vehicles, to help clients achieve their investment objectives. It has a presence in the retail and institutional markets within the investment management industry in North America; Europe, Middle East and Africa (EMEA), and Asia-Pacific. Its Jemstep solution provides wealth management home offices and their advisors with a suite of technology solutions that are customizable and are integrated into existing systems. The solution offers advisors an open architecture platform that includes Invesco’s fundamental and factor-based investment strategies. It offers retail products within various asset classes. It offers a suite of domestic and global strategies, including traditional and quantitative equities, fixed income and absolute return strategies.

About Och-Ziff Capital Management Group

Och-Ziff Capital Management Group LLC (Och-Ziff) is an institutional alternative asset manager. The Company provides asset management services through its funds, which pursue a range of global investment opportunities. The Company operates through two segments: the Och-Ziff Funds and real estate business. The Och-Ziff Funds segment provides asset management services to its multi-strategy funds, credit funds and other alternative investment vehicles. The real estate business segment provides asset management services to its real estate funds and is included within Other Operations. The Company offers customized solutions within and across its product platforms to help its fund investors meet their investment objectives. The Company’s global multi-strategy fund, The OZ Master Fund, allocates capital between its investment strategies in North America, Europe and Asia based on market conditions and investment opportunities.