Victory Capital (VCTR) vs. Eaton Vance (NYSE:EV) Financial Comparison

Victory Capital (NASDAQ:VCTR) and Eaton Vance (NYSE:EV) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Profitability

This table compares Victory Capital and Eaton Vance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Victory Capital 15.41% 24.19% 13.17%
Eaton Vance 23.16% 35.03% 12.25%

Institutional & Insider Ownership

13.9% of Victory Capital shares are held by institutional investors. Comparatively, 70.5% of Eaton Vance shares are held by institutional investors. 10.2% of Victory Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Victory Capital and Eaton Vance, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Victory Capital 0 1 7 0 2.88
Eaton Vance 1 5 0 0 1.83

Victory Capital presently has a consensus target price of $14.50, suggesting a potential downside of 9.49%. Eaton Vance has a consensus target price of $41.33, suggesting a potential upside of 4.54%. Given Eaton Vance’s higher possible upside, analysts clearly believe Eaton Vance is more favorable than Victory Capital.

Earnings & Valuation

This table compares Victory Capital and Eaton Vance’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Victory Capital $413.41 million 2.62 $63.70 million $1.46 10.97
Eaton Vance $1.70 billion 2.71 $381.93 million $3.21 12.32

Eaton Vance has higher revenue and earnings than Victory Capital. Victory Capital is trading at a lower price-to-earnings ratio than Eaton Vance, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Victory Capital has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500. Comparatively, Eaton Vance has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.

Dividends

Eaton Vance pays an annual dividend of $1.40 per share and has a dividend yield of 3.5%. Victory Capital does not pay a dividend. Eaton Vance pays out 43.6% of its earnings in the form of a dividend. Eaton Vance has raised its dividend for 38 consecutive years.

Summary

Eaton Vance beats Victory Capital on 11 of the 17 factors compared between the two stocks.

About Victory Capital

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an independent investment management company in the United States. It offers investment advisory, fund administration, and distribution services through broker-dealers, retirement platforms, and registered investment advisor networks. As of December 31, 2018, its franchises and solutions platform managed a set of 71 investment strategies for a range of institutional and retail clients. The company was founded in 2013 and is headquartered in Brooklyn, Ohio.

About Eaton Vance

Eaton Vance Corp., through its subsidiaries, engages in the creation, marketing, and management of investment funds in the United States. It also provides investment management and counseling services to institutions and individuals. Further, the company operates as an adviser and distributor of investment companies and separate accounts. As of October 31, 2004, the company provided investment advisory or administration services to approximately 150 funds; approximately 1,300 separately managed individual and institutional accounts; and participated in approximately 40 retail-managed account broker/dealer programs. It markets and distributes shares of funds through a retail network of national and regional broker/dealers, banks, insurance companies, and financial planning firms. Eaton Vance Corp. was incorporated on January 29, 1981 and is headquartered in Boston, Massachusetts.

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