Critical Review: Eaton Vance Corporation (EV) & The Competition
Eaton Vance Corporation (NYSE: EV) is one of 61 public companies in the “Investment Management” industry, but how does it contrast to its peers? We will compare Eaton Vance Corporation to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, valuation, earnings, risk and profitability.
This table compares Eaton Vance Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eaton Vance Corporation||18.03%||34.47%||13.99%|
|Eaton Vance Corporation Competitors||29.70%||103.78%||27.39%|
Valuation and Earnings
This table compares Eaton Vance Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Eaton Vance Corporation||$1.47 billion||$477.11 million||21.94|
|Eaton Vance Corporation Competitors||$817.53 million||$231.65 million||-11.71|
Eaton Vance Corporation has higher revenue and earnings than its peers. Eaton Vance Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Institutional & Insider Ownership
68.3% of Eaton Vance Corporation shares are owned by institutional investors. Comparatively, 47.7% of shares of all “Investment Management” companies are owned by institutional investors. 26.7% of shares of all “Investment Management” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings for Eaton Vance Corporation and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eaton Vance Corporation||0||5||2||0||2.29|
|Eaton Vance Corporation Competitors||654||2095||2133||34||2.31|
Eaton Vance Corporation currently has a consensus price target of $50.93, indicating a potential upside of 0.91%. As a group, “Investment Management” companies have a potential downside of 1.26%. Given Eaton Vance Corporation’s higher possible upside, analysts clearly believe Eaton Vance Corporation is more favorable than its peers.
Eaton Vance Corporation pays an annual dividend of $1.24 per share and has a dividend yield of 2.5%. Eaton Vance Corporation pays out 53.9% of its earnings in the form of a dividend. As a group, “Investment Management” companies pay a dividend yield of 3.4% and pay out 65.4% of their earnings in the form of a dividend. Eaton Vance Corporation has increased its dividend for 36 consecutive years.
Volatility & Risk
Eaton Vance Corporation has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Eaton Vance Corporation’s peers have a beta of 1.42, suggesting that their average share price is 42% more volatile than the S&P 500.
Eaton Vance Corporation peers beat Eaton Vance Corporation on 8 of the 15 factors compared.
Eaton Vance Corporation Company Profile
Eaton Vance Corp. is engaged in the business of managing investment funds and providing investment management and advisory services to high-net-worth individuals and institutions. The Company operates as an investment advisor to funds and separate accounts. The Company, through its subsidiaries and other affiliates, manages active equity, income and alternative strategies across a range of investment styles and asset classes, including the United States and global equities, floating-rate bank loans, municipal bonds, global income, high-yield and investment grade bonds. Through its subsidiary, the Company also manages a range of engineered alpha strategies, including systematic equity, systematic alternatives and managed options strategies. The Company’s open-end fund lineup includes tax-managed equity funds, and non-tax-managed equity and multi-asset funds. The Company’s family of closed-end funds includes municipal bond, domestic and global equity, and bank loan.
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