Cohen & Steers (NYSE: CNS) and Medley Management (NYSE:MDLY) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.
This is a summary of recent ratings for Cohen & Steers and Medley Management, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cohen & Steers||1||2||1||0||2.00|
Cohen & Steers presently has a consensus target price of $44.33, suggesting a potential upside of 18.06%. Medley Management has a consensus target price of $9.75, suggesting a potential upside of 58.54%. Given Medley Management’s higher probable upside, analysts clearly believe Medley Management is more favorable than Cohen & Steers.
Institutional & Insider Ownership
45.4% of Cohen & Steers shares are owned by institutional investors. Comparatively, 65.6% of Medley Management shares are owned by institutional investors. 52.9% of Cohen & Steers shares are owned by insiders. Comparatively, 5.1% of Medley Management shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Cohen & Steers pays an annual dividend of $1.12 per share and has a dividend yield of 3.0%. Medley Management pays an annual dividend of $0.80 per share and has a dividend yield of 13.0%. Cohen & Steers pays out 54.4% of its earnings in the form of a dividend. Medley Management pays out 421.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cohen & Steers has raised its dividend for 5 consecutive years.
This table compares Cohen & Steers and Medley Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cohen & Steers||26.34%||33.17%||26.42%|
Earnings and Valuation
This table compares Cohen & Steers and Medley Management’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cohen & Steers||$366.32 million||4.75||$150.50 million||$2.06||18.23|
|Medley Management||$67.57 million||0.48||$27.69 million||$0.19||32.37|
Cohen & Steers has higher revenue and earnings than Medley Management. Cohen & Steers is trading at a lower price-to-earnings ratio than Medley Management, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Cohen & Steers has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Medley Management has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.
Cohen & Steers beats Medley Management on 13 of the 16 factors compared between the two stocks.
About Cohen & Steers
Cohen & Steers, Inc. (CNS) is a holding company. The Company is an investment manager with a focus on liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. The Company serves institutional and individual investors. The Company manages three types of investment vehicles: institutional accounts, open-end funds and closed-end funds. The Company also provides services in connection with model-based strategies (MBS) accounts. In addition, the Company provides several services in connection with assets held by unit investment trusts (UITs). As a portfolio consultant to a number of UITs, the Company constructs a portfolio of securities that suit the investment objective of the UIT. The Company also provides ongoing portfolio monitoring services and provides a license to certain firms to use its name in connection with certain of their investment products.
About Medley Management
Medley Management Inc. is an asset management firm offering yield solutions to retail and institutional investors. The Company operates in the investment management segment. It is focused on credit-related investment strategies, primarily originating senior secured loans to private middle market companies in the United States. The Company generally holds these loans to maturity. Its national direct origination franchise provides capital to the middle market in the United States. The Company has over $4.8 billion of assets under management (AUM) in approximately two business development companies (BDCs), Medley Capital Corporation (MCC) and Sierra Income Corporation (SIC), as well as private investment vehicles. It has over $5 billion of AUM. The Company provides capital to over 300 companies across approximately 35 industries in North America. The Company’s long-dated private funds include MOF I, MOF II and MOF III. Its private funds are managed through partnership structures
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