Invesco (NYSE:IVZ – Get Rating) and Grosvenor Capital Management (NASDAQ:GCMG – Get Rating) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.
Earnings and Valuation
This table compares Invesco and Grosvenor Capital Management's revenue, earnings per share and valuation.
Get Invesco alerts:| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Invesco | $6.89 billion | 0.90 | $1.63 billion | $2.32 | 5.91 |
| Grosvenor Capital Management | $531.59 million | 2.79 | $21.48 million | $0.53 | 14.89 |
Invesco has higher revenue and earnings than Grosvenor Capital Management. Invesco is trading at a lower price-to-earnings ratio than Grosvenor Capital Management, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Invesco and Grosvenor Capital Management's net margins, return on equity and return on assets.| Net Margins | Return on Equity | Return on Assets | |
| Invesco | 19.67% | 12.05% | 4.50% |
| Grosvenor Capital Management | 5.91% | -186.25% | 23.22% |
Dividends
Invesco pays an annual dividend of $0.75 per share and has a dividend yield of 5.5%. Grosvenor Capital Management pays an annual dividend of $0.40 per share and has a dividend yield of 5.1%. Invesco pays out 32.3% of its earnings in the form of a dividend. Grosvenor Capital Management pays out 75.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Invesco has raised its dividend for 2 consecutive years. Invesco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
83.6% of Invesco shares are owned by institutional investors. Comparatively, 23.0% of Grosvenor Capital Management shares are owned by institutional investors. 1.9% of Invesco shares are owned by company insiders. Comparatively, 77.3% of Grosvenor Capital Management shares are owned 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
Invesco has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Grosvenor Capital Management has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Invesco and Grosvenor Capital Management, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Invesco | 0 | 5 | 3 | 0 | 2.38 |
| Grosvenor Capital Management | 0 | 2 | 1 | 0 | 2.33 |
Invesco presently has a consensus price target of $20.68, indicating a potential upside of 50.96%. Grosvenor Capital Management has a consensus price target of $10.67, indicating a potential upside of 35.19%. Given Invesco's stronger consensus rating and higher possible upside, research analysts clearly believe Invesco is more favorable than Grosvenor Capital Management.
Summary
Invesco beats Grosvenor Capital Management on 13 of the 17 factors compared between the two stocks.
About Invesco
(Get Rating)
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.
About Grosvenor Capital Management
(Get Rating)
Grosvenor Capital Management, L.P. is global alternative asset management solutions provider. The firm primarily provides its services to pooled investment vehicles. It also provides its services to investment companies, high net worth individuals, pension and profit sharing plans and state or municipal government entities. The firm invests in equity and alternative investment markets of the United States and internationally. The firm invests in multi-strategy, credit-focused, equity-focused, macro-focused, commodity-focused, and other specialty portfolios. It focuses in hedge fund asset classes, private equity, real estate, and/or infrastructure, credit and absolute return strategies. It also focuses in primary fund investments, secondary fund investments, and co-investments with a focus on buyout, distressed debt, mezzanine, venture capital/growth equity investments. The firm seeks to make regionally-focused investments in middle-market buyout. It prefers to invest in aerospace and defense, advanced electronics, information technology, biosciences, and advanced materials. It focuses on Ohio and the Midwest region. The firm employs fundamental and quantitative analysis. Grosvenor Capital Management, L.P. was founded in 1971 and is based in Chicago, Illinois with additional offices in North America, Asia and Europe.
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