Federated Investors (NYSE: FII) is one of 57 publicly-traded companies in the “Investment Management” industry, but how does it weigh in compared to its rivals? We will compare Federated Investors to related businesses based on the strength of its institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Volatility & Risk

Federated Investors has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Federated Investors’ rivals have a beta of 1.41, suggesting that their average share price is 41% more volatile than the S&P 500.

Valuation & Earnings

This table compares Federated Investors and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Federated Investors $1.13 billion $345.66 million 13.49
Federated Investors Competitors $835.74 million $236.68 million -9.62

Federated Investors has higher revenue and earnings than its rivals. Federated Investors is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Federated Investors pays an annual dividend of $1.00 per share and has a dividend yield of 3.6%. Federated Investors pays out 48.1% of its earnings in the form of a dividend. As a group, “Investment Management” companies pay a dividend yield of 3.7% and pay out 66.3% of their earnings in the form of a dividend.

Institutional & Insider Ownership

82.9% of Federated Investors shares are held by institutional investors. Comparatively, 52.0% of shares of all “Investment Management” companies are held by institutional investors. 7.1% of Federated Investors shares are held by company insiders. Comparatively, 26.8% of shares of all “Investment Management” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Federated Investors and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federated Investors 18.91% 33.93% 18.36%
Federated Investors Competitors 30.21% 110.12% 29.14%

Analyst Ratings

This is a breakdown of recent recommendations for Federated Investors and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federated Investors 2 4 0 0 1.67
Federated Investors Competitors 661 2032 1956 38 2.29

Federated Investors presently has a consensus price target of $23.50, suggesting a potential downside of 16.22%. As a group, “Investment Management” companies have a potential downside of 0.05%. Given Federated Investors’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Federated Investors has less favorable growth aspects than its rivals.

Summary

Federated Investors rivals beat Federated Investors on 9 of the 15 factors compared.

About Federated Investors

Federated Investors, Inc. (Federated) is a provider of investment management products and related financial services. Federated operates through investment management business segment. It is engaged in sponsoring, marketing and providing investment-related services to various investment products, including mutual funds and Separate Accounts, which include separately managed accounts, institutional accounts, sub-advised funds and other managed products. It operates in one segment, the investment management business. As of December 31, 2016, Federated provided investment advisory services to 124 sponsored investment companies and other funds (Federated Funds). It markets these funds to banks, brokers and dealers and other financial intermediaries using them to meet the needs of their customers and clients, including retail investors, corporations and retirement plans. The Company offers a range of products and strategies, including money market, equity and fixed-income investments.

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