Calamos Asset Management (NASDAQ: CLMS) and Manning & Napier (NYSE:MN) are both financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Earnings and Valuation

This table compares Calamos Asset Management and Manning & Napier’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Calamos Asset Management N/A N/A N/A $0.05 165.60
Manning & Napier $229.41 million 0.25 $80.46 million $0.53 7.08

Manning & Napier has higher revenue and earnings than Calamos Asset Management. Manning & Napier 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Calamos Asset Management and Manning & Napier, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calamos Asset Management 0 0 0 0 N/A
Manning & Napier 0 2 0 0 2.00

Manning & Napier has a consensus target price of $4.00, indicating a potential upside of 6.67%. Given Manning & Napier’s higher possible upside, analysts clearly believe Manning & Napier is more favorable than Calamos Asset Management.

Profitability

This table compares Calamos Asset Management and Manning & Napier’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Calamos Asset Management 58.85% 2.51% 13.51%
Manning & Napier 3.41% 34.28% 20.97%

Volatility & Risk

Calamos Asset Management has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Manning & Napier has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Insider & Institutional Ownership

56.5% of Calamos Asset Management shares are owned by institutional investors. Comparatively, 57.0% of Manning & Napier shares are owned by institutional investors. 20.4% of Calamos Asset Management shares are owned by company insiders. Comparatively, 2.5% of Manning & Napier shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Calamos Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 7.2%. Manning & Napier pays an annual dividend of $0.32 per share and has a dividend yield of 8.5%. 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. Manning & Napier pays out 60.4% of its earnings in the form of a dividend. Manning & Napier is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Manning & Napier beats Calamos Asset Management on 9 of the 11 factors compared between the two stocks.

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.

About Manning & Napier

Manning & Napier, Inc. is an independent investment management company. The Company operates through investment management industry segment. It provides a range of investment solutions through separately managed accounts, mutual funds and collective investment trust funds, as well as a range of consultative services. It offers equity, fixed income and alternative strategies, as well as a range of blended asset portfolios, such as life cycle funds. It serves a client base of high net worth individuals and institutions, including 401(k) plans, pension plans, Taft-Hartley plans (Taft-Hartley), endowments and foundations. It offers its investment management capabilities through direct sales to high net worth individuals and institutions, as well as through third-party intermediaries, platforms and institutional investment consultants. Its investment management offerings include approximately 40 separate account composites, and over 60 mutual funds and collective investment trusts.

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