Manning and Napier (MN) vs. Victory Capital (VCTR) Head-To-Head Contrast

Manning and Napier (NYSE:MN) and Victory Capital (NASDAQ:VCTR) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

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This table compares Manning and Napier and Victory Capital’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manning and Napier	$201.53 million	0.20	$3.58 million	$0.40	6.43
Victory Capital	$409.63 million	1.31	$25.82 million	$1.25	6.33

Victory Capital has higher revenue and earnings than Manning and Napier. Victory Capital is trading at a lower price-to-earnings ratio than Manning and Napier, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Manning and Napier and Victory Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manning and Napier	0	1	0	0	2.00
Victory Capital	0	2	7	0	2.78

Manning and Napier presently has a consensus price target of $4.00, suggesting a potential upside of 55.64%. Victory Capital has a consensus price target of $13.81, suggesting a potential upside of 74.62%. Given Victory Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Victory Capital is more favorable than Manning and Napier.

Dividends

Manning and Napier pays an annual dividend of $0.32 per share and has a dividend yield of 12.5%. Victory Capital does not pay a dividend. Manning and Napier pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Manning and Napier and Victory Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manning and Napier	1.12%	15.05%	10.35%
Victory Capital	N/A	N/A	N/A

Institutional & Insider Ownership

51.5% of Manning and Napier shares are owned by institutional investors. Comparatively, 16.2% of Victory Capital shares are owned by institutional investors. 3.4% of Manning and Napier shares are owned 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

Victory Capital beats Manning and Napier on 8 of the 15 factors compared between the two stocks.

Manning and Napier Company Profile

Manning & Napier, Inc. is publicly owned investment manager. It provides its services to net worth individuals and institutions, including 401(k) plans, pension plans, taft-hartley plans, endowments and foundations. The firm manages separate client-focused equity and fixed income portfolios. It invests in the public equity and fixed income markets of the United States. The firm employs fundamental analysis along with a combination of bottom-up and top-down stock picking approach to create its portfolios. Manning & Napier, Inc. was founded in 1970 and is based in Fairport, New York with additional offices in Dublin, Ohio; St. Petersburg, Florida; and Chicago, Illinois.

Victory Capital Company Profile

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an independent investment management company in the United States. It offers investment advisory, fund administration, and distribution services through broker-dealers, retirement platforms, and registered investment advisor networks. As of September 30, 2017, its franchises and solutions platform managed a set of 70 investment strategies for a range of institutional and retail clients. The company was founded in 2013 and is based in Brooklyn, Ohio.