Federated Investors (NYSE: FII) is one of 61 public companies in the “Investment Management” industry, but how does it weigh in compared to its peers? We will compare Federated Investors to similar companies based on the strength of its analyst recommendations, risk, valuation, earnings, institutional ownership, profitability and dividends.

Insider & Institutional Ownership

82.9% of Federated Investors shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Investment Management” companies are owned by institutional investors. 7.1% of Federated Investors shares are owned by company insiders. Comparatively, 26.8% of shares of all “Investment Management” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Federated Investors and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Federated Investors $1.13 billion $345.66 million 14.97
Federated Investors Competitors $817.28 million $231.48 million -11.07

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

Volatility & Risk

Federated Investors has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Federated Investors’ peers have a beta of 1.42, indicating that their average share price is 42% more volatile than the S&P 500.

Dividends

Federated Investors pays an annual dividend of $1.00 per share and has a dividend yield of 3.2%. 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 3.3% and pay out 65.4% of their earnings in the form of a dividend.

Profitability

This table compares Federated Investors and its peers’ 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 29.76% 104.39% 27.63%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Federated Investors and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federated Investors 2 5 0 0 1.71
Federated Investors Competitors 649 2075 2123 34 2.32

Federated Investors currently has a consensus target price of $27.29, indicating a potential downside of 12.35%. As a group, “Investment Management” companies have a potential downside of 1.79%. Given Federated Investors’ peers stronger consensus rating and higher possible upside, analysts plainly believe Federated Investors has less favorable growth aspects than its peers.

Summary

Federated Investors peers 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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