Cohen & Steers (NYSE: CNS) and Pzena Investment Management (NYSE:PZN) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.
Valuation & Earnings
This table compares Cohen & Steers and Pzena Investment Management’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cohen & Steers||$366.32 million||4.93||$150.50 million||$2.06||18.94|
|Pzena Investment Management||$122.22 million||1.36||$56.40 million||$0.66||14.62|
Cohen & Steers has higher revenue and earnings than Pzena Investment Management. Pzena Investment Management is trading at a lower price-to-earnings ratio than Cohen & Steers, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Cohen & Steers has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Pzena Investment Management has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.
Cohen & Steers pays an annual dividend of $1.12 per share and has a dividend yield of 2.9%. Pzena Investment Management pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Cohen & Steers pays out 54.4% of its earnings in the form of a dividend. Pzena Investment Management pays out 18.2% 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. Pzena Investment Management has raised its dividend for 5 consecutive years.
This is a breakdown of recent ratings and target prices for Cohen & Steers and Pzena Investment Management, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cohen & Steers||1||1||1||0||2.00|
|Pzena Investment Management||0||1||0||0||2.00|
Cohen & Steers currently has a consensus target price of $45.50, indicating a potential upside of 16.61%. Given Cohen & Steers’ higher probable upside, analysts plainly believe Cohen & Steers is more favorable than Pzena Investment Management.
This table compares Cohen & Steers and Pzena Investment Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cohen & Steers||26.34%||33.17%||26.42%|
|Pzena Investment Management||14.82%||12.93%||6.38%|
Institutional & Insider Ownership
45.4% of Cohen & Steers shares are owned by institutional investors. Comparatively, 17.4% of Pzena Investment Management shares are owned by institutional investors. 52.9% of Cohen & Steers shares are owned by insiders. Comparatively, 55.9% of Pzena Investment Management shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Cohen & Steers beats Pzena Investment Management on 12 of the 16 factors compared between the two stocks.
Cohen & Steers Company Profile
Cohen & Steers, Inc. (CNS) is a holding company. The Company is an investment manager with a focus on liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. The Company serves institutional and individual investors. The Company manages three types of investment vehicles: institutional accounts, open-end funds and closed-end funds. The Company also provides services in connection with model-based strategies (MBS) accounts. In addition, the Company provides several services in connection with assets held by unit investment trusts (UITs). As a portfolio consultant to a number of UITs, the Company constructs a portfolio of securities that suit the investment objective of the UIT. The Company also provides ongoing portfolio monitoring services and provides a license to certain firms to use its name in connection with certain of their investment products.
Pzena Investment Management Company Profile
Pzena Investment Management, Inc. is a holding company. The Company is the sole managing member of Pzena Investment Management, LLC. Pzena Investment Management, LLC is an investment management company. The Company also serves as the general partner of Pzena Investment Management, LP. The Company offers institutional investment products to public and corporate pension funds, endowments, foundations and certain commingled vehicles geared toward institutional investors. The Company also offers access to certain of its global and non-United States strategies through private placement vehicles and collective investment trusts. Pzena Investment Management, LLC is its operating company. Pzena Investment Management, LLC consists of Class A and Class B membership units.
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