Virtus Investment Partners (NASDAQ: VRTS) and America First Multifamily Investors (NASDAQ:ATAX) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Risk and Volatility
Virtus Investment Partners has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, America First Multifamily Investors has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.
Virtus Investment Partners pays an annual dividend of $1.80 per share and has a dividend yield of 1.5%. America First Multifamily Investors pays an annual dividend of $0.50 per share and has a dividend yield of 8.1%. Virtus Investment Partners pays out 45.6% of its earnings in the form of a dividend. America First Multifamily Investors pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation and Earnings
This table compares Virtus Investment Partners and America First Multifamily Investors’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Virtus Investment Partners||$425.61 million||2.06||$37.01 million||$3.95||30.96|
|America First Multifamily Investors||$70.38 million||5.32||$30.59 million||$0.44||14.09|
Virtus Investment Partners has higher revenue and earnings than America First Multifamily Investors. America First Multifamily Investors is trading at a lower price-to-earnings ratio than Virtus Investment Partners, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Virtus Investment Partners and America First Multifamily Investors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Virtus Investment Partners||0||6||1||0||2.14|
|America First Multifamily Investors||0||1||0||0||2.00|
Virtus Investment Partners presently has a consensus target price of $139.71, suggesting a potential upside of 14.24%. America First Multifamily Investors has a consensus target price of $6.00, suggesting a potential downside of 3.23%. Given Virtus Investment Partners’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Virtus Investment Partners is more favorable than America First Multifamily Investors.
Institutional and Insider Ownership
95.8% of Virtus Investment Partners shares are owned by institutional investors. Comparatively, 6.6% of America First Multifamily Investors shares are owned by institutional investors. 4.0% of Virtus Investment Partners shares are owned by insiders. Comparatively, 1.3% of America First Multifamily Investors shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Virtus Investment Partners and America First Multifamily Investors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Virtus Investment Partners||8.70%||13.75%||3.03%|
|America First Multifamily Investors||37.79%||10.06%||2.93%|
Virtus Investment Partners beats America First Multifamily Investors on 13 of the 16 factors compared between the two stocks.
Virtus Investment Partners Company Profile
Virtus Investment Partners, Inc. (Virtus) is a provider of investment management and related services to individuals and institutions. The Company provides its products in various forms and through multiple distribution channels. Its retail products include open-end mutual funds, closed-end funds, exchange traded funds, variable insurance funds, undertakings for collective investments in transferable securities (UCITS) and separately managed accounts. Its open-end mutual funds are distributed through intermediaries. Its closed-end funds trade on the New York Stock Exchange. Its variable insurance funds are available as investment options in variable annuities and life insurance products distributed by life insurance companies. Separately managed accounts consists of intermediary programs, sponsored and distributed by unaffiliated brokerage firms, and private client accounts, which are offered to the high net-worth clients of its affiliated managers.
America First Multifamily Investors Company Profile
America First Multifamily Investors, L.P. is engaged in acquiring, holding, selling and dealing with a portfolio of mortgage revenue bonds, which have been issued to provide construction and/or permanent financing for multifamily and student housing (collectively Residential Properties) and commercial properties. Its segments are Mortgage Revenue Bond Investments, MF Properties, Public Housing Capital Fund Trusts and mortgage-backed securities (MBS) Investments. Its Mortgage Revenue Bond Investments segment consists of its portfolio of mortgage revenue bonds, which have been issued to provide construction and/or permanent financing for the residential properties and a commercial property. The MF Properties segment consists of indirect equity interests in multifamily, student housing, and senior citizen residential properties, which are not financed by mortgage revenue bonds held by the Company, but which it intends to finance by such bonds through a restructuring.
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