Brightsphere Investment Group (NYSE:BSIG) vs. Virtus Investment Partners (NYSE:VRTS) Critical Survey

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Brightsphere Investment Group (NYSE:BSIG) and Virtus Investment Partners (NASDAQ:VRTS) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Dividends

Virtus Investment Partners pays an annual dividend of $2.20 per share and has a dividend yield of 2.2%. Brightsphere Investment Group does not pay a dividend. Virtus Investment Partners pays out 17.9% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Brightsphere Investment Group and Virtus Investment Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brightsphere Investment Group $928.20 million 0.85 $136.40 million $1.86 4.62
Virtus Investment Partners $552.23 million 1.25 $75.53 million $12.26 8.09

Brightsphere Investment Group has higher revenue and earnings than Virtus Investment Partners. Brightsphere Investment Group is trading at a lower price-to-earnings ratio than Virtus Investment Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Brightsphere Investment Group and Virtus Investment Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brightsphere Investment Group 18.36% 214.61% 11.68%
Virtus Investment Partners 13.86% 21.29% 3.96%

Institutional & Insider Ownership

0.2% of Brightsphere Investment Group shares are held by institutional investors. Comparatively, 94.2% of Virtus Investment Partners shares are held by institutional investors. 0.6% of Brightsphere Investment Group shares are held by company insiders. Comparatively, 5.6% of Virtus Investment Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Brightsphere Investment Group and Virtus Investment Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brightsphere Investment Group 1 2 1 0 2.00
Virtus Investment Partners 0 3 2 0 2.40

Brightsphere Investment Group currently has a consensus price target of $13.38, indicating a potential upside of 55.70%. Virtus Investment Partners has a consensus price target of $105.60, indicating a potential upside of 6.45%. Given Brightsphere Investment Group’s higher possible upside, research analysts clearly believe Brightsphere Investment Group is more favorable than Virtus Investment Partners.

Summary

Virtus Investment Partners beats Brightsphere Investment Group on 8 of the 15 factors compared between the two stocks.

About Brightsphere Investment Group

BrightSphere Investment Group plc is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as OM Asset Management plc. BrightSphere Investment Group plc operates as a former subsidiary of Old Mutual Global Investors.

About Virtus Investment Partners

Virtus Investment Partners, Inc. is a publicly owned investment manager. The firm primarily provides its services to individual and institutional clients. It launches separate client focused equity and fixed income portfolios. The firm launches equity, fixed income, and balanced mutual funds for its clients. It invests in the public equity, fixed income, and real estate markets. The firm also invests in exchange traded funds. It employs a multi manager approach for its products. The firm employs quantitative analysis to make its investments. It benchmarks the performance of its portfolios against the S&P 500 Index. The firm conducts in-house research to make its investments. Virtus Investment Partners, Inc. was founded in 1988 and is based in Hartford, Connecticut.

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