Manning & Napier (MN) versus Virtus Investment Partners (VRTS) Financial Analysis

Manning & Napier (NYSE: MN) and Virtus Investment Partners (NASDAQ:VRTS) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Volatility & Risk

Manning & Napier has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Virtus Investment Partners has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Manning & Napier and Virtus Investment Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manning & Napier 0 2 0 0 2.00
Virtus Investment Partners 0 5 0 0 2.00

Manning & Napier presently has a consensus target price of $4.00, suggesting a potential upside of 15.94%. Virtus Investment Partners has a consensus target price of $130.00, suggesting a potential upside of 10.50%. Given Manning & Napier’s higher possible upside, equities analysts clearly believe Manning & Napier is more favorable than Virtus Investment Partners.

Valuation and Earnings

This table compares Manning & Napier and Virtus Investment Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manning & Napier $248.94 million 0.21 $9.27 million $0.48 7.19
Virtus Investment Partners $322.55 million 2.61 $48.50 million $5.36 21.95

Virtus Investment Partners has higher revenue and earnings than Manning & Napier. Manning & Napier is trading at a lower price-to-earnings ratio than Virtus Investment Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Manning & Napier and Virtus Investment Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manning & Napier 3.30% 30.20% 18.84%
Virtus Investment Partners 11.64% 12.75% 3.21%

Dividends

Manning & Napier pays an annual dividend of $0.32 per share and has a dividend yield of 9.3%. Virtus Investment Partners pays an annual dividend of $1.80 per share and has a dividend yield of 1.5%. Manning & Napier pays out 66.7% of its earnings in the form of a dividend. Virtus Investment Partners pays out 33.6% 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.

Insider and Institutional Ownership

51.6% of Manning & Napier shares are owned by institutional investors. Comparatively, 95.8% of Virtus Investment Partners shares are owned by institutional investors. 2.5% of Manning & Napier shares are owned by company insiders. Comparatively, 4.0% of Virtus Investment Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Virtus Investment Partners beats Manning & Napier on 10 of the 14 factors compared between the two stocks.

Manning & Napier Company Profile

Manning & Napier, Inc. is an independent investment management company. The Company operates through investment management industry segment. It provides a range of investment solutions through separately managed accounts, mutual funds and collective investment trust funds, as well as a range of consultative services. It offers equity, fixed income and alternative strategies, as well as a range of blended asset portfolios, such as life cycle funds. It serves a client base of high net worth individuals and institutions, including 401(k) plans, pension plans, Taft-Hartley plans (Taft-Hartley), endowments and foundations. It offers its investment management capabilities through direct sales to high net worth individuals and institutions, as well as through third-party intermediaries, platforms and institutional investment consultants. Its investment management offerings include approximately 40 separate account composites, and over 60 mutual funds and collective investment trusts.

Virtus Investment Partners Company Profile

Virtus Investment Partners, Inc. (Virtus) is a provider of investment management and related services to individuals and institutions. The Company provides its products in various forms and through multiple distribution channels. Its retail products include open-end mutual funds, closed-end funds, exchange traded funds, variable insurance funds, undertakings for collective investments in transferable securities (UCITS) and separately managed accounts. Its open-end mutual funds are distributed through intermediaries. Its closed-end funds trade on the New York Stock Exchange. Its variable insurance funds are available as investment options in variable annuities and life insurance products distributed by life insurance companies. Separately managed accounts consists of intermediary programs, sponsored and distributed by unaffiliated brokerage firms, and private client accounts, which are offered to the high net-worth clients of its affiliated managers.

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