Medley Management (NYSE: MDLY) is one of 60 publicly-traded companies in the “Investment Management” industry, but how does it compare to its rivals? We will compare Medley Management to similar companies based on the strength of its valuation, profitability, risk, earnings, dividends, institutional ownership and analyst recommendations.

Profitability

This table compares Medley Management and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medley Management 2.68% -43.71% 17.11%
Medley Management Competitors 31.95% 106.83% 28.64%

Earnings & Valuation

This table compares Medley Management and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Medley Management $67.57 million $27.69 million 33.42
Medley Management Competitors $817.28 million $231.48 million -10.57

Medley Management’s rivals have higher revenue and earnings than Medley Management. Medley Management is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Medley Management pays an annual dividend of $0.80 per share and has a dividend yield of 12.6%. Medley Management pays out 421.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Investment Management” companies pay a dividend yield of 3.4% and pay out 65.6% of their earnings in the form of a dividend.

Volatility & Risk

Medley Management has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Medley Management’s rivals have a beta of 1.42, indicating that their average stock price is 42% more volatile than the S&P 500.

Insider & Institutional Ownership

65.6% of Medley Management shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Investment Management” companies are owned by institutional investors. 5.1% of Medley Management shares are owned by insiders. Comparatively, 26.8% of shares of all “Investment Management” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Medley Management and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medley Management 0 3 0 0 2.00
Medley Management Competitors 640 2032 2084 34 2.32

Medley Management presently has a consensus target price of $9.75, indicating a potential upside of 53.54%. As a group, “Investment Management” companies have a potential downside of 2.78%. Given Medley Management’s higher probable upside, equities analysts plainly believe Medley Management is more favorable than its rivals.

Summary

Medley Management rivals beat Medley Management on 11 of the 15 factors compared.

Medley Management Company Profile

Medley Management Inc. is an asset management firm offering yield solutions to retail and institutional investors. The Company operates in the investment management segment. It is focused on credit-related investment strategies, primarily originating senior secured loans to private middle market companies in the United States. The Company generally holds these loans to maturity. Its national direct origination franchise provides capital to the middle market in the United States. The Company has over $4.8 billion of assets under management (AUM) in approximately two business development companies (BDCs), Medley Capital Corporation (MCC) and Sierra Income Corporation (SIC), as well as private investment vehicles. It has over $5 billion of AUM. The Company provides capital to over 300 companies across approximately 35 industries in North America. The Company’s long-dated private funds include MOF I, MOF II and MOF III. Its private funds are managed through partnership structures

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