Reviewing Medley Management (MDLY) and Invesco (IVZ)

Medley Management (NYSE: MDLY) and Invesco (NYSE:IVZ) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Earnings and Valuation

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This table compares Medley Management and Invesco’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medley Management $65.56 million 0.46 $920,000.00 N/A N/A
Invesco $5.16 billion 2.47 $1.13 billion $2.70 11.57

Invesco has higher revenue and earnings than Medley Management.

Institutional and Insider Ownership

63.3% of Medley Management shares are held by institutional investors. Comparatively, 82.4% of Invesco shares are held by institutional investors. 5.1% of Medley Management shares are held by company insiders. Comparatively, 1.8% of Invesco shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Medley Management and Invesco, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medley Management 0 2 0 0 2.00
Invesco 0 5 8 0 2.62

Medley Management presently has a consensus price target of $9.00, indicating a potential upside of 63.64%. Invesco has a consensus price target of $40.46, indicating a potential upside of 29.48%. Given Medley Management’s higher possible upside, research analysts plainly believe Medley Management is more favorable than Invesco.

Dividends

Medley Management pays an annual dividend of $0.80 per share and has a dividend yield of 14.5%. Invesco pays an annual dividend of $1.16 per share and has a dividend yield of 3.7%. Invesco pays out 43.0% of its earnings in the form of a dividend. Invesco has increased its dividend for 9 consecutive years.

Risk & Volatility

Medley Management has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Invesco has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Profitability

This table compares Medley Management and Invesco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medley Management 1.41% -24.04% 11.05%
Invesco 21.85% 13.20% 3.78%

Summary

Invesco beats Medley Management on 10 of the 16 factors compared between the two stocks.

About Medley Management

Medley Management Inc. is an investment holding company and operate and control all of the business and affairs of Medley LLC and its subsidiaries. Medley Management Inc. was incorporated on June 13, 2014 and is based in New York, New York.

About Invesco

Invesco Ltd. is a publicly owned investment manager. The firm provides its services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds. It manages separate client-focused equity and fixed income portfolios. The firm also launches equity, fixed income, commodity, multi-asset, and balanced mutual funds for its clients. It launches equity, fixed income, multi-asset, and balanced exchange-traded funds. The firm also launches and manages private funds. It invests in the public equity and fixed income markets across the globe. The firm also invests in alternative markets, such as commodities and currencies. For the equity portion of its portfolio, it invests in growth and value stocks of large-cap, mid-cap, and small-cap companies. For the fixed income portion of its portfolio, the firm invests in convertibles, government bonds, municipal bonds, treasury securities, and cash. It also invests in short term and intermediate term bonds, investment grade and high yield bonds, taxable and tax-free bonds, senior secured loans, and structured securities such as asset-backed securities, mortgage-backed securities, and commercial mortgage-backed securities. The firm employs absolute return, global macro, and long/short strategies. It employs quantitative analysis to make its investments. The firm was formerly known as Invesco Plc, AMVESCAP plc, Amvesco plc, Invesco PLC, Invesco MIM, and H. Lotery & Co. Ltd. Invesco Ltd. was founded in December 1935 and is based in Atlanta, Georgia with an additional office in Hamilton, Bermuda.

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