Pzena Investment Management (NYSE: PZN) and Calamos Asset Management (NASDAQ:CLMS) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitabiliy, analyst recommendations, institutional ownership, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations for Pzena Investment Management and Calamos Asset Management, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pzena Investment Management 0 1 0 0 2.00
Calamos Asset Management 1 1 0 0 1.50

Calamos Asset Management has a consensus price target of $6.38, indicating a potential downside of 23.01%. Given Calamos Asset Management’s higher possible upside, analysts clearly believe Calamos Asset Management is more favorable than Pzena Investment Management.

Profitability

This table compares Pzena Investment Management and Calamos Asset Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pzena Investment Management 14.75% 12.70% 6.55%
Calamos Asset Management 58.85% 2.51% 13.51%

Volatility & Risk

Pzena Investment Management has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500. Comparatively, Calamos Asset Management has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Dividends

Pzena Investment Management pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Calamos Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 7.2%. Pzena Investment Management pays out 20.0% of its earnings in the form of a dividend. Calamos Asset Management pays out 1,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

16.9% of Pzena Investment Management shares are held by institutional investors. Comparatively, 56.5% of Calamos Asset Management shares are held by institutional investors. 55.9% of Pzena Investment Management shares are held by company insiders. Comparatively, 20.4% of Calamos Asset Management shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Pzena Investment Management and Calamos Asset Management’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pzena Investment Management $114.54 million 1.61 $51.06 million $0.60 17.70
Calamos Asset Management N/A N/A N/A $0.05 165.60

Pzena Investment Management has higher revenue and earnings than Calamos Asset Management. Pzena Investment Management is trading at a lower price-to-earnings ratio than Calamos Asset Management, indicating that it is currently the more affordable of the two stocks.

Summary

Pzena Investment Management beats Calamos Asset Management on 7 of the 12 factors compared between the two stocks.

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.

Calamos Asset Management Company Profile

Calamos Asset Management, Inc. is a holding company. The Company is the manager of Calamos Investments LLC, which owns and manages its operating companies. The Company provides investment advisory services to individuals and institutional investors through investment products that include open-end and closed-end funds (Funds), an exchange traded fund, separate accounts, offshore funds and partnerships. The subsidiaries through which the Company provides these services include Calamos Advisors LLC (CAL), an investment advisor; Calamos Financial Services LLC (CFS), a broker-dealer; Calamos Wealth Management LLC, an investment advisor, and Calamos Investments LLP, a United Kingdom-based investment advisor, and a distributor of the offshore funds and Company products.

Receive News & Ratings for Pzena Investment Management Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pzena Investment Management Inc and related companies with MarketBeat.com's FREE daily email newsletter.