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

Analyst Ratings

This is a summary of current ratings for Manning & Napier and Medley Management, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manning & Napier 0 2 0 0 2.00
Medley Management 0 3 0 0 2.00

Manning & Napier presently has a consensus price target of $4.00, indicating a potential upside of 6.67%. Medley Management has a consensus price target of $9.75, indicating a potential upside of 62.50%. Given Medley Management’s higher probable upside, analysts plainly believe Medley Management is more favorable than Manning & Napier.

Earnings and Valuation

This table compares Manning & Napier and Medley Management’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Manning & Napier $229.41 million 0.25 $80.46 million $0.53 7.08
Medley Management $67.57 million 0.47 $27.69 million $0.19 31.58

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

Profitability

This table compares Manning & Napier and Medley Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manning & Napier 3.41% 34.28% 20.97%
Medley Management 2.68% -43.71% 17.11%

Volatility and Risk

Manning & Napier has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Medley Management has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Insider and Institutional Ownership

57.0% of Manning & Napier shares are owned by institutional investors. Comparatively, 65.6% of Medley Management shares are owned by institutional investors. 2.5% of Manning & Napier shares are owned by company insiders. Comparatively, 5.1% of Medley Management shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Manning & Napier pays an annual dividend of $0.32 per share and has a dividend yield of 8.5%. Medley Management pays an annual dividend of $0.80 per share and has a dividend yield of 13.3%. Manning & Napier pays out 60.4% of its earnings in the form of a dividend. Medley Management pays out 421.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Manning & Napier beats Medley Management on 8 of the 14 factors compared between the two stocks.

About Manning & Napier

Manning & Napier, Inc. is an independent investment management company. The Company operates through investment management industry segment. It provides a range of investment solutions through separately managed accounts, mutual funds and collective investment trust funds, as well as a range of consultative services. It offers equity, fixed income and alternative strategies, as well as a range of blended asset portfolios, such as life cycle funds. It serves a client base of high net worth individuals and institutions, including 401(k) plans, pension plans, Taft-Hartley plans (Taft-Hartley), endowments and foundations. It offers its investment management capabilities through direct sales to high net worth individuals and institutions, as well as through third-party intermediaries, platforms and institutional investment consultants. Its investment management offerings include approximately 40 separate account composites, and over 60 mutual funds and collective investment trusts.

About Medley Management

Medley Management Inc. is an asset management firm offering yield solutions to retail and institutional investors. The Company operates in the investment management segment. It is focused on credit-related investment strategies, primarily originating senior secured loans to private middle market companies in the United States. The Company generally holds these loans to maturity. Its national direct origination franchise provides capital to the middle market in the United States. The Company has over $4.8 billion of assets under management (AUM) in approximately two business development companies (BDCs), Medley Capital Corporation (MCC) and Sierra Income Corporation (SIC), as well as private investment vehicles. It has over $5 billion of AUM. The Company provides capital to over 300 companies across approximately 35 industries in North America. The Company’s long-dated private funds include MOF I, MOF II and MOF III. Its private funds are managed through partnership structures

Receive News & Stock Ratings for Manning & Napier Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Manning & Napier Inc. and related stocks with our FREE daily email newsletter.