Critical Survey: Virtus Investment Partners (VRTS) and Calamos Asset Management (CLMS)
Virtus Investment Partners (NASDAQ: VRTS) and Calamos Asset Management (NASDAQ:CLMS) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitabiliy, institutional ownership, dividends and earnings.
Earnings and Valuation
This table compares Virtus Investment Partners and Calamos Asset Management’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Virtus Investment Partners||$322.04 million||2.52||$62.46 million||$6.45||17.97|
|Calamos Asset Management||N/A||N/A||N/A||$0.05||165.60|
Virtus Investment Partners has higher revenue and earnings than Calamos Asset Management. Virtus Investment Partners 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.
Institutional & Insider Ownership
98.4% of Virtus Investment Partners shares are held by institutional investors. Comparatively, 56.5% of Calamos Asset Management shares are held by institutional investors. 4.3% of Virtus Investment Partners 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, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current ratings for Virtus Investment Partners and Calamos Asset Management, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Virtus Investment Partners||1||3||0||0||1.75|
|Calamos Asset Management||0||1||0||0||2.00|
Virtus Investment Partners presently has a consensus target price of $110.00, suggesting a potential downside of 5.09%. Calamos Asset Management has a consensus target price of $6.75, suggesting a potential downside of 18.48%. Given Virtus Investment Partners’ higher possible upside, analysts clearly believe Virtus Investment Partners is more favorable than Calamos Asset Management.
This table compares Virtus Investment Partners and Calamos Asset Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Virtus Investment Partners||15.27%||10.71%||4.86%|
|Calamos Asset Management||58.85%||2.51%||13.51%|
Volatility & Risk
Virtus Investment Partners has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Calamos Asset Management has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.
Virtus Investment Partners pays an annual dividend of $1.80 per share and has a dividend yield of 1.6%. Calamos Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 7.2%. Virtus Investment Partners pays out 27.9% 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.
Virtus Investment Partners beats Calamos Asset Management on 7 of the 12 factors compared between the two stocks.
About Virtus Investment Partners
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.
About Calamos Asset Management
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.
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