Moelis & Co (NYSE:MC) and Victory Capital (NASDAQ:VCTR) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.
This table compares Moelis & Co and Victory Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Moelis & Co||9.39%||52.92%||25.69%|
This is a breakdown of recent recommendations and price targets for Moelis & Co and Victory Capital, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Moelis & Co||0||2||3||0||2.60|
Moelis & Co presently has a consensus target price of $62.20, indicating a potential upside of 48.98%. Victory Capital has a consensus target price of $13.81, indicating a potential upside of 74.40%. Given Victory Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Victory Capital is more favorable than Moelis & Co.
Institutional & Insider Ownership
69.4% of Moelis & Co shares are owned by institutional investors. Comparatively, 16.2% of Victory Capital shares are owned by institutional investors. 29.9% of Moelis & Co shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Moelis & Co pays an annual dividend of $1.88 per share and has a dividend yield of 4.5%. Victory Capital does not pay a dividend. Moelis & Co pays out 82.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Moelis & Co has increased its dividend for 3 consecutive years.
Valuation & Earnings
This table compares Moelis & Co and Victory Capital’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Moelis & Co||$684.61 million||3.43||$29.40 million||$2.29||18.23|
|Victory Capital||$409.63 million||1.31||$25.82 million||$1.25||6.34|
Moelis & Co has higher revenue and earnings than Victory Capital. Victory Capital is trading at a lower price-to-earnings ratio than Moelis & Co, indicating that it is currently the more affordable of the two stocks.
Moelis & Co beats Victory Capital on 12 of the 16 factors compared between the two stocks.
Moelis & Co Company Profile
Moelis & Company is a global investment bank. The firm provides services relating to mergers & acquisitions, recapitalization & restructuring, capital markets and financial institution advisory; private funds; shareholder defense and strategic alliances. The firm's expertise is into global energy; IPO advisory; technology, media, telecommunication sectors. The firm serves clients from 19 geographic locations in the Americas, Europe, the Middle East, Asia and Australia. The firm supports clients through all phases of the business cycle. Moelis & Company was founded in 2007 and is headquartered in New York, New York with additional offices in the United States; Europe; Asia; Australia and Middle East
Victory Capital Company Profile
Victory Capital Holdings, Inc., together with its subsidiaries, operates as an independent investment management company in the United States. It offers investment advisory, fund administration, and distribution services through broker-dealers, retirement platforms, and registered investment advisor networks. As of September 30, 2017, its franchises and solutions platform managed a set of 70 investment strategies for a range of institutional and retail clients. The company was founded in 2013 and is based in Brooklyn, Ohio.
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