Comparing OM Asset Management PLC (OMAM) & Eaton Vance Corporation (EV)

OM Asset Management PLC (NYSE: OMAM) and Eaton Vance Corporation (NYSE:EV) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Dividends

OM Asset Management PLC pays an annual dividend of $0.36 per share and has a dividend yield of 2.3%. Eaton Vance Corporation pays an annual dividend of $1.12 per share and has a dividend yield of 2.2%. OM Asset Management PLC pays out 45.6% of its earnings in the form of a dividend. Eaton Vance Corporation pays out 48.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Eaton Vance Corporation has raised its dividend for 36 consecutive years. OM Asset Management PLC is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for OM Asset Management PLC and Eaton Vance Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OM Asset Management PLC 0 0 6 0 3.00
Eaton Vance Corporation 0 5 1 0 2.17

OM Asset Management PLC presently has a consensus target price of $17.88, indicating a potential upside of 16.07%. Eaton Vance Corporation has a consensus target price of $49.58, indicating a potential downside of 2.91%. Given OM Asset Management PLC’s stronger consensus rating and higher probable upside, research analysts plainly believe OM Asset Management PLC is more favorable than Eaton Vance Corporation.

Risk & Volatility

OM Asset Management PLC has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Eaton Vance Corporation has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500.

Profitability

This table compares OM Asset Management PLC and Eaton Vance Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OM Asset Management PLC 12.12% 95.51% 12.52%
Eaton Vance Corporation 18.03% 34.47% 13.99%

Valuation & Earnings

This table compares OM Asset Management PLC and Eaton Vance Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
OM Asset Management PLC $772.40 million 2.19 $173.80 million $0.79 19.49
Eaton Vance Corporation $1.47 billion 3.89 $477.11 million $2.30 22.20

Eaton Vance Corporation has higher revenue and earnings than OM Asset Management PLC. OM Asset Management PLC is trading at a lower price-to-earnings ratio than Eaton Vance Corporation, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

66.0% of OM Asset Management PLC shares are held by institutional investors. Comparatively, 68.9% of Eaton Vance Corporation shares are held by institutional investors. 1.5% of OM Asset Management PLC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Eaton Vance Corporation beats OM Asset Management PLC on 10 of the 17 factors compared between the two stocks.

OM Asset Management PLC Company Profile

OM Asset Management plc is a global, diversified, multi-boutique asset management company. As of December 31, 2016, the Company operated its business through its eight Affiliates, each of which operated autonomously and employed its own investment processes. Its Affiliates include Acadian Asset Management LLC; Barrow, Hanley, Mewhinney & Strauss, LLC; Campbell Global, LLC; Copper Rock Capital Partners LLC; Heitman LLC; Investment Counselors of Maryland, LLC; Landmark Partners, LLC, and Thompson, Siegel & Walmsley LLC. It works with boutique asset managers, and the Company leverages the resources within its organization to engage with its Affiliates and provide them with capabilities unavailable to specialist asset management firms. The Company works with its Affiliates to identify and execute upon opportunities for their businesses in areas, such as business line expansion and product development, as well as activities required for the operation of investment boutiques.

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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