StoneCastle Financial (NASDAQ:BANX) and Manning and Napier (NYSE:MN) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
This is a summary of recent ratings for StoneCastle Financial and Manning and Napier, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Manning and Napier||0||1||0||0||2.00|
StoneCastle Financial pays an annual dividend of $1.52 per share and has a dividend yield of 7.5%. Manning and Napier pays an annual dividend of $0.32 per share and has a dividend yield of 16.2%. StoneCastle Financial pays out 95.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Manning and Napier is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
22.2% of StoneCastle Financial shares are owned by institutional investors. Comparatively, 51.8% of Manning and Napier shares are owned by institutional investors. 8.1% of StoneCastle Financial shares are owned by company insiders. Comparatively, 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 stock will outperform the market over the long term.
Valuation & Earnings
This table compares StoneCastle Financial and Manning and Napier’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|StoneCastle Financial||$17.37 million||7.60||$12.03 million||$1.59||12.67|
|Manning and Napier||$201.53 million||0.15||$3.58 million||$0.40||4.95|
StoneCastle Financial has higher earnings, but lower revenue than Manning and Napier. Manning and Napier is trading at a lower price-to-earnings ratio than StoneCastle Financial, indicating that it is currently the more affordable of the two stocks.
This table compares StoneCastle Financial and Manning and Napier’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Manning and Napier||0.73%||12.26%||8.56%|
Risk and Volatility
StoneCastle Financial has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Manning and Napier has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.
StoneCastle Financial Company Profile
StoneCastle Financial Corp. is a closed ended balanced mutual fund launched and managed by StoneCastle Asset Management LLC. It invests in public equity markets of the United States. The fund invests in stocks of companies operating across the banking sector. It invests in dividend paying growth and value stocks of companies. For its fixed income portion, the fund invests in subordinated debt securities which are rated BBB- or better by Kroll Ratings. The fund employs fundamental analysis with bottom-up security picking approach by focusing on factors such as review of historical and prospective financial information, interviews with management and key employees of the prospective bank, financial models and projections, changes in interest rates, changes in unemployment rates, changes in home prices, changes in economic activity to create its portfolio. It employs proprietary research to create its portfolio. StoneCastle Financial Corp. was formed on February 7, 2013 and is domiciled in the United States.
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.
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