Critical Comparison: Invesco PLC (IVZ) versus 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 superior investment? We will contrast the two companies based on the strength of their valuation, profitabiliy, risk, institutional ownership, earnings, dividends and analyst recommendations.
Volatility and Risk
Invesco PLC has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, Och-Ziff Capital Management Group has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.
Institutional & Insider Ownership
79.8% of Invesco PLC shares are owned by institutional investors. Comparatively, 53.4% of Och-Ziff Capital Management Group shares are owned by institutional investors. 1.8% of Invesco PLC shares are owned by company insiders. Comparatively, 60.3% of Och-Ziff Capital Management Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Invesco PLC pays an annual dividend of $1.16 per share and has a dividend yield of 3.2%. Och-Ziff Capital Management Group pays an annual dividend of $0.08 per share and has a dividend yield of 2.6%. Invesco PLC pays out 53.0% of its earnings in the form of a dividend. Och-Ziff Capital Management Group pays out -19.5% 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. Invesco PLC has raised 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.
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||-8.27%||-41.72%||9.21%|
This is a summary of current ratings and target prices for Invesco PLC and Och-Ziff Capital Management Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Och-Ziff Capital Management Group||0||6||2||0||2.25|
Invesco PLC presently has a consensus target price of $36.79, suggesting a potential upside of 1.80%. Och-Ziff Capital Management Group has a consensus target price of $3.71, suggesting a potential upside of 20.59%. Given Och-Ziff Capital Management Group’s higher probable upside, analysts clearly believe Och-Ziff Capital Management Group is more favorable than Invesco PLC.
Earnings and 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||$4.78 billion||3.08||$1.34 billion||$2.19||16.50|
|Och-Ziff Capital Management Group||$721.07 million||0.79||-$110.19 million||($0.41)||-7.51|
Invesco PLC has higher revenue and earnings than Och-Ziff Capital Management Group. Och-Ziff Capital Management Group is trading at a lower price-to-earnings ratio than Invesco PLC, indicating that it is currently the more affordable of the two stocks.
Invesco PLC beats Och-Ziff Capital Management Group on 13 of the 17 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.
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