Gamco Investors (NYSE:GBL) and Merriman (OTCMKTS:MERR) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Profitability

This table compares Gamco Investors and Merriman’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gamco Investors 29.89% -223.65% 100.28%
Merriman N/A N/A N/A

Valuation & Earnings

This table compares Gamco Investors and Merriman’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gamco Investors $360.52 million 1.68 $77.80 million N/A N/A
Merriman N/A N/A N/A N/A N/A

Gamco Investors has higher revenue and earnings than Merriman.

Volatility & Risk

Gamco Investors has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Merriman has a beta of 2.97, meaning that its share price is 197% more volatile than the S&P 500.

Insider and Institutional Ownership

16.7% of Gamco Investors shares are owned by institutional investors. 81.0% of Gamco Investors shares are owned by insiders. Comparatively, 63.0% of Merriman shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Gamco Investors pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Merriman does not pay a dividend. Gamco Investors has increased its dividend for 6 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for Gamco Investors and Merriman, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gamco Investors 0 0 0 0 N/A
Merriman 0 0 0 0 N/A

Summary

Gamco Investors beats Merriman on 7 of the 9 factors compared between the two stocks.

Gamco Investors Company Profile

GAMCO Investors, Inc. is a publicly owned holding investment manager. The firm also provides wealth management, investment advisory, institutional research, brokerage, dealer, underwriting, and distribution services to its clients. It provides its services to individuals including high net worth individuals, corporate pension and profit-sharing plans, foundations, endowments, jointly trust plans, municipalities, and investment companies. The firm, through its subsidiaries, manages separate client-focused equity, fixed income, and balanced portfolios. It also launches equity, fixed income, and balanced mutual funds and manages equity mutual funds for its clients. Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. It invests in value stocks of companies. The firm employs fundamental analysis with a focus on bottom-up stock picking approach to create its portfolios. It conducts in-house research to make its investments. The firm was founded in 1976 and is based in Rye, New York with additional offices in Greenwich, Connecticut; Bannockburn, Illinois; and Tokyo, Japan. GAMCO Investors, Inc. operates as a subsidiary of GGCP, Inc.

Merriman Company Profile

Merriman Holdings, Inc., through its subsidiary, Merriman Capital, Inc., provides capital market advisory and research, corporate, and investment banking services primarily in the United States and Canada. The company's investment banking services include corporate financing services, such as initial public offerings, secondary offerings, and private placements services; and strategic advisory services comprise transaction-specific advice regarding mergers and acquisitions, divestitures, spin-offs, and privatizations, as well as general strategic advice. It also offers institutional brokerage services, including institutional sales trading and equity execution, and options execution services to institutional clients. In addition, the company executes securities transactions for money managers, mutual funds, hedge funds, insurance companies, and pension and profit-sharing plans; and provides integrated research and trading solutions, as well as capital markets advisory services. It primarily serves institutional investors and corporate clients. The company was formerly known as Merriman Curhan Ford Group, Inc. and changed its name to Merriman Holdings, Inc. in August 2010. Merriman Holdings, Inc. was founded in 1987 and is headquartered in San Francisco, California.

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