Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Investment Management & Fund Operators industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Investment Management & Fund Operators Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Investment Management & Fund Operators Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Investment Management & Fund Operators industry for Friday, February 16, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Investment Management & Fund Operators industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

AMTD IDEA Group - ADR’s Value Grade

Value Grade:

AMTD IDEA Group, formerly AMTD International Inc, is an investment holding company principally engaged in the strategic investments. The Company operates its business through three segments. The Strategic Investment segment engages in proprietary investments and the management of investment portfolios mainly focusing on financial services and asset classes. The Investment Banking segment is involved in raising funds through equity and debt financing, providing underwriting for initial public offerings (IPOs), private placements and debt issuances and providing financial advisory services. The Asset Management segment provides asset management products and services, including in relation to listed equities, fixed income securities, hedge funds, structured products, foreign exchange, private equities, alternative investments, discretionary account services, investment advisory services and external asset management services.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

AMTD IDEA Group - ADR has a Value Score of 91, which is considered to be undervalued.

When you look at AMTD IDEA Group - ADR’s price-to-sales ratio at 0.48 compared to the industry median at 3.76, this company has a lower price relative to revenue compared to its peers. This could make AMTD IDEA Group - ADR’s stock more attractive for value investors.

AMTD IDEA Group - ADR’s price-earnings ratio is 0.40 compared to the industry median at 13.90. This means it has a lower share price relative to earnings compared to its peers. This could make AMTD IDEA Group - ADR more attractive for value investors.

Now, let’s assess AMTD IDEA Group - ADR’s EV/EBITDA ratio, also known as enterprise multiple. At 1.8, when compared to the industry median of 15.2, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. AMTD IDEA Group - ADR’s shareholder yield is lower than its industry median ratio of 3.31%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. AMTD IDEA Group - ADR’s price-to-book ratio is lower than its industry median ratio of 1.07. This could make AMTD IDEA Group - ADR more attractive to investors looking for a new addition to their portfolio.

Blackstone Secured Lending Fund’s Value Grade

Value Grade:

Blackstone Secured Lending Fund is a non-diversified, closed-end management investment company. The Company's investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. It invests approximately 80% of its total assets in secured debt investments. The Company is focused on achieving its investment objectives primarily through originated loans and other securities, including syndicated loans, of private United States companies, typically in the form of first lien senior secured and unitranche loans (including first out/last out loans), and to a lesser extent, second lien, third lien, unsecured and subordinated loans and other debt and equity securities. The Company invests across various sectors, which includes Aerospace and Defense, Air Freight and Logistics, Building Products, Commercial Services and Supplies, and Health Care Providers and Services, among others. Blackstone Credit BDC Advisors LLC is the advisor of the Company.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Blackstone Secured Lending Fund has a Value Score of 62, which is considered to be undervalued.

Blackstone Secured Lending Fund’s price-earnings ratio is 8.3 compared to the industry median at 13.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Blackstone Secured Lending Fund more attractive for value investors.

Blackstone Secured Lending Fund’s price-to-book ratio is lower than its peers. This could make Blackstone Secured Lending Fund fairly attractive for value investors when compared to the industry median at 1.07.

You can read more about Blackstone Secured Lending Fund’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

CI Financial Corp’s Value Grade

Value Grade:

CI Financial Corp. is a diversified global asset and wealth management company operating primarily in Canada, the United States and Australia. The Company is engaged in the management and distribution of a range of financial products and services, including wealth management, insurance, and others. The Company operates through three segments: Asset Management, Canadian Wealth Management, and U.S. Wealth Management. The Asset Management segment includes CI Global Asset Management, which operates in Canada, and GSFM Pty Ltd., which operates in Australia. The Canadian Wealth Management segment includes the operations of CI Assante Wealth Management, Aligned Capital Partners, CI Private Wealth, Northwood Family Office, CI Direct Investing and CI Investment Services. The U.S. Wealth Management segment includes Corient Private Wealth LLC, an integrated wealth management company providing comprehensive solutions to ultra-high-net-worth and high-net-worth clients across the United States.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CI Financial Corp has a Value Score of 91, which is considered to be undervalued.

CI Financial Corp’s price-to-book ratio is lower than its peers. This could make CI Financial Corp more attractive for value investors when compared to the industry median at 1.07.

You can read more about CI Financial Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Principal Financial Group Inc’s Value Grade

Value Grade:

Principal Financial Group, Inc. is a global financial company. The Company offers businesses, individuals and institutional clients a range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. The Company's segments include retirement and income solutions, principal asset management and benefits and protection. The Retirement and Income Solutions segment offers workplace savings and retirement solutions, banking, trust and custodial services, individual variable annuities, and pension risk transfer, among others. The Principal Asset Management segment provides global investment solutions to institutional, retirement, retail and high net worth investors. The Benefits and Protection segment is organized into Specialty Benefits, which provides group dental, group life insurance, group disability insurance, supplemental health products, and individual disability insurance, and life insurance.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Principal Financial Group Inc has a Value Score of 76, which is considered to be undervalued.

Principal Financial Group Inc’s price-earnings ratio is 13.3 compared to the industry median at 13.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Principal Financial Group Inc more attractive for value investors.

Principal Financial Group Inc’s price-to-book ratio is lower than its peers. This could make Principal Financial Group Inc more attractive for value investors when compared to the industry median at 1.07.

You can read more about Principal Financial Group Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Rand Capital Corp’s Value Grade

Value Grade:

Rand Capital Corporation is an internally managed, closed-end, diversified, management investment company. The Company?s investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately held, lower middle market companies with committed and experienced managements in a variety of industries. At times when excess cash is available, the Company may also invest in high yielding publicly traded equity instruments. It generally has to invest at least 70% of total assets in qualifying assets and provide managerial assistance to the portfolio companies in which they invest. The Company's portfolio includes software, manufacturing, professional services, consumer product, automotive, BDC investment fund, and oil and gas. The Company?s investment activities are managed by its external investment adviser, Rand Capital Management, LLC.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Rand Capital Corp has a Value Score of 75, which is considered to be undervalued.

Rand Capital Corp’s price-earnings ratio is 6.0 compared to the industry median at 13.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Rand Capital Corp more attractive for value investors.

Rand Capital Corp’s price-to-book ratio is higher than its peers. This could make Rand Capital Corp less attractive for value investors when compared to the industry median at 1.07.

You can read more about Rand Capital Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Silvercrest Asset Management Group Inc’s Value Grade

Value Grade:

Silvercrest Asset Management Group Inc. is a full-service wealth management company. The Company operates through the investment management industry segment. The Company is focused on providing financial advisory and related family office services to high-net-worth individuals and institutional investors. The Company offers a suite of complementary and customized family office services for families seeking oversight of their financial affairs. The Company provides a range of administrative services to the management of certain of its Company?s funds of funds and other investment funds collectively, the Silvercrest Funds. It also provides a range of family office services to some of its clients, including philanthropic, estate and wealth planning services, tax planning and preparation, financial statement, bill paying and record keeping services, bank loan arrangement and payment services, and property and casualty insurance review.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Silvercrest Asset Management Group Inc has a Value Score of 78, which is considered to be undervalued.

Silvercrest Asset Management Group Inc’s price-earnings ratio is 13.6 compared to the industry median at 13.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Silvercrest Asset Management Group Inc more attractive for value investors.

Silvercrest Asset Management Group Inc’s price-to-book ratio is lower than its peers. This could make Silvercrest Asset Management Group Inc more attractive for value investors when compared to the industry median at 1.07.

You can read more about Silvercrest Asset Management Group Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Safeguard Scientifics Inc’s Value Grade

Value Grade:

Safeguard Scientifics, Inc. is a provider of capital and relevant expertise to technology-driven businesses. The Company holds interests in 8 non-consolidated companies. The Company offers strategic, operational, and management support to certain of its ownership interests. Through its strategic support, the Company offers strategic direction to certain of its ownership interests, which include defining short and long-term strategic goals; identifying and planning for the critical success factors to reach these goals; identifying and addressing the challenges and operational improvements; and identifying sources of and providing capital to drive growth. Through its management and operational support, the Company serves on the boards of directors of its partner companies, working with them to develop and implement strategic and operating plans. It measures and monitors the achievement of these plans through regular review of operational and financial performance measurements.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Safeguard Scientifics Inc has a Value Score of 96, which is considered to be undervalued.

Safeguard Scientifics Inc’s price-to-book ratio is higher than its peers. This could make Safeguard Scientifics Inc less attractive for value investors when compared to the industry median at 1.07.

You can read more about Safeguard Scientifics Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Investment Management & Fund Operators Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Investment Management & Fund Operators stocks as well as other industrys.

Choosing Which of the 7 Best Investment Management & Fund Operators Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• AMTD IDEA Group - ADR stock has a Value Grade of A.
• Blackstone Secured Lending Fund stock has a Value Grade of B.
• CI Financial Corp stock has a Value Grade of A.
• Principal Financial Group Inc stock has a Value Grade of B.
• Rand Capital Corp stock has a Value Grade of B.
• Silvercrest Asset Management Group Inc stock has a Value Grade of B.
• Safeguard Scientifics Inc stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 undervalued stocks in the Investment Management & Fund Operators industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Investment Management & Fund Operators Stocks

Want to learn more about Investment Management & Fund Operators stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Investment Management & Fund Operators Stocks for Friday, February 16
• 7 Undervalued Investment Management & Fund Operators Stocks for Thursday, February 15
• What You Need to Know About Patria Investments Ltd's Q4 Earnings
• Why Artisan Partners Asset Management Inc’s (APAM) Stock Is Up 4.01%

AAII Disclaimer

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