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 risk, valuation, profitabiliy, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and price targets for Invesco PLC and Och-Ziff Capital Management Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invesco PLC 0 2 9 1 2.92
Och-Ziff Capital Management Group 0 6 1 0 2.14

Invesco PLC presently has a consensus price target of $37.14, indicating a potential upside of 7.55%. Och-Ziff Capital Management Group has a consensus price target of $3.50, indicating a potential upside of 19.05%. Given Och-Ziff Capital Management Group’s higher probable upside, analysts clearly believe Och-Ziff Capital Management Group is more favorable than Invesco PLC.

Institutional & Insider Ownership

79.9% 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 insiders. Comparatively, 60.3% of Och-Ziff Capital Management Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Invesco PLC has a beta of 1.8, meaning 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, meaning that its share price is 29% more volatile than the S&P 500.

Profitability

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
Invesco PLC 18.98% 12.74% 3.82%
Och-Ziff Capital Management Group 4.46% -53.35% 10.85%

Dividends

Invesco PLC pays an annual dividend of $1.16 per share and has a dividend yield of 3.4%. 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. 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.

Valuation & Earnings

This table compares Invesco PLC and Och-Ziff Capital Management Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Invesco PLC $4.84 billion 2.90 $1.37 billion $2.23 15.48
Och-Ziff Capital Management Group $721.07 million 0.75 -$110.19 million $0.10 29.40

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.

Summary

Invesco PLC beats Och-Ziff Capital Management Group on 15 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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