Invesco PLC (NYSE: IVZ) and Och-Ziff Capital Management Group (NYSE:OZM) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
79.2% of Invesco PLC shares are held by institutional investors. Comparatively, 54.9% 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Invesco PLC pays an annual dividend of $1.16 per share and has a dividend yield of 3.5%. Och-Ziff Capital Management Group pays an annual dividend of $0.08 per share and has a dividend yield of 2.7%. 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. Och-Ziff Capital Management Group has raised its dividend for 8 consecutive years. Invesco PLC is clearly the better dividend stock, given its higher yield and lower payout ratio.
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|
|Och-Ziff Capital Management Group||4.46%||-55.73%||10.42%|
Valuation & Earnings
This table compares Invesco PLC and Och-Ziff Capital Management Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Invesco PLC||$4.84 billion||2.76||$1.37 billion||$2.23||14.74|
|Och-Ziff Capital Management Group||$716.20 million||0.76||$108.03 million||$0.10||29.50|
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 share 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 share price is 29% more volatile than the S&P 500.
This is a summary of recent recommendations for Invesco PLC and Och-Ziff Capital Management Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|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 13.01%. Och-Ziff Capital Management Group has a consensus target price of $3.50, suggesting a potential upside of 18.64%. Given Och-Ziff Capital Management Group’s higher probable upside, analysts plainly believe Och-Ziff Capital Management Group is more favorable than Invesco PLC.
Invesco PLC beats Och-Ziff Capital Management Group on 14 of the 18 factors compared between the two stocks.
Invesco PLC Company Profile
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.
Och-Ziff Capital Management Group Company Profile
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.
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