Pzena Investment Management (NYSE:PZN) and The Bank of New York Mellon (NYSE:BK) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.
Analyst Recommendations
This is a summary of current ratings and price targets for Pzena Investment Management and The Bank of New York Mellon, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Pzena Investment Management | 0 | 0 | 0 | 0 | N/A |
| The Bank of New York Mellon | 0 | 5 | 10 | 0 | 2.67 |
The Bank of New York Mellon has a consensus price target of $49.1333, indicating a potential upside of 5.48%. Given The Bank of New York Mellon's higher probable upside, analysts clearly believe The Bank of New York Mellon is more favorable than Pzena Investment Management.
Insider & Institutional Ownership
15.0% of Pzena Investment Management shares are held by institutional investors. Comparatively, 82.3% of The Bank of New York Mellon shares are held by institutional investors. 53.3% of Pzena Investment Management shares are held by company insiders. Comparatively, 0.1% of The Bank of New York Mellon shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
Pzena Investment Management has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, The Bank of New York Mellon has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
Profitability
This table compares Pzena Investment Management and The Bank of New York Mellon's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Pzena Investment Management | 2.46% | 10.22% | 5.43% |
| The Bank of New York Mellon | 23.09% | 9.89% | 0.89% |
Dividends
Pzena Investment Management pays an annual dividend of $1.00 per share and has a dividend yield of 9.4%. The Bank of New York Mellon pays an annual dividend of $1.24 per share and has a dividend yield of 2.7%. The Bank of New York Mellon pays out 30.8% of its earnings in the form of a dividend. The Bank of New York Mellon has raised its dividend for 1 consecutive years.
Valuation & Earnings
This table compares Pzena Investment Management and The Bank of New York Mellon's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Pzena Investment Management | $150.75 million | 5.03 | $8.46 million | N/A | N/A |
| The Bank of New York Mellon | $20.77 billion | 1.97 | $4.44 billion | $4.02 | 11.59 |
The Bank of New York Mellon has higher revenue and earnings than Pzena Investment Management.
Summary
Pzena Investment Management beats The Bank of New York Mellon on 8 of the 15 factors compared between the two stocks.
