Critical Analysis: Invesco (IVZ) versus The Competition

Invesco (NYSE:IVZ) is one of 1,745 publicly-traded companies in the “Capital Markets” industry, but how does it contrast to its rivals? We will compare Invesco to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.

Volatility and Risk

Invesco has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, Invesco’s rivals have a beta of 0.82, indicating that their average stock price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Invesco and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invesco	0	8	5	1	2.50
Invesco Competitors	5526	20067	22390	638	2.37

Invesco currently has a consensus target price of $33.27, suggesting a potential upside of 14.37%. As a group, “Capital Markets” companies have a potential upside of 25.99%. Given Invesco’s rivals higher possible upside, analysts plainly believe Invesco has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

66.1% of Invesco shares are owned by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are owned by institutional investors. 1.4% of Invesco shares are owned by insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Invesco	-0.93%	12.83%	5.03%
Invesco Competitors	300.77%	79.21%	3.63%

Dividends

Invesco pays an annual dividend of $0.86 per share and has a dividend yield of 3.0%. Invesco pays out -126.5% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 30.1% of their earnings in the form of a dividend. Invesco has increased its dividend for 5 consecutive years.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Invesco	$6.38 billion	-$281.70 million	-42.78
Invesco Competitors	$2.50 billion	$394.23 million	15.69

Invesco has higher revenue, but lower earnings than its rivals. Invesco is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Invesco rivals beat Invesco on 8 of the 15 factors compared.

About Invesco

Invesco Ltd. is a publicly owned investment manager. The firm provides its services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds. It manages separate client-focused equity and fixed income portfolios. The firm also launches equity, fixed income, commodity, multi-asset, and balanced mutual funds for its clients. It launches equity, fixed income, multi-asset, and balanced exchange-traded funds. The firm also launches and manages private funds. It invests in the public equity and fixed income markets across the globe. The firm also invests in alternative markets, such as commodities and currencies. For the equity portion of its portfolio, it invests in growth and value stocks of large-cap, mid-cap, and small-cap companies. For the fixed income portion of its portfolio, the firm invests in convertibles, government bonds, municipal bonds, treasury securities, and cash. It also invests in short term and intermediate term bonds, investment grade and high yield bonds, taxable and tax-free bonds, senior secured loans, and structured securities such as asset-backed securities, mortgage-backed securities, and commercial mortgage-backed securities. The firm employs absolute return, global macro, and long/short strategies. It employs quantitative analysis to make its investments. The firm was formerly known as Invesco Plc, AMVESCAP plc, Amvesco plc, Invesco PLC, Invesco MIM, and H. Lotery & Co. Ltd. Invesco Ltd. was founded in 1935 and is based in Atlanta, Georgia with an additional office in Hamilton, Bermuda.