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.

Click the button below to learn more about A+ Investor and subscribe today.

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 Wednesday, February 21, 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 0.46 compared to the industry median at 3.79, 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 0.39 compared to the industry median at 13.81. 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 15.1, 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 3.49%. 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 1.06. This could make AMTD IDEA Group - ADR more attractive to investors looking for a new addition to their portfolio.

Bank of New York Mellon Corp’s Value Grade

Value Grade:

The Bank of New York Mellon Corporation is a global company. The Company?s businesses are divided into three business segments: Securities Services, Market and Wealth Services and Investment and Wealth Management. The Company also includes Other segment, which includes the leasing portfolio, corporate treasury activities, including its securities portfolio, derivatives and other trading activities, corporate and bank-owned life insurance, renewable energy and other corporate investments. The Company?s two principal United States banking subsidiaries include The Bank of New York Mellon, a New York state-chartered bank, which houses its Securities Services businesses, including asset servicing and issuer services and certain market and Wealth Services businesses, including treasury services and clearance and collateral management, as well as the bank-advised business of investment management and BNY Mellon, National Association, which houses its wealth management business.

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.

Bank of New York Mellon Corp has a Value Score of 81, which is considered to be undervalued.

Bank of New York Mellon Corp’s price-earnings ratio is 13.8 compared to the industry median at 13.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Bank of New York Mellon Corp fairly attractive for value investors.

Bank of New York Mellon Corp’s price-to-book ratio is lower than its peers. This could make Bank of New York Mellon Corp more attractive for value investors when compared to the industry median at 1.06.

You can read more about Bank of New York Mellon 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.

U.S. Global Investors, Inc.’s Value Grade

Value Grade:

U.S. Global Investors, Inc. is an investment adviser. The Company offers a range of investment options in the mutual fund and exchange-traded fund (ETF) space. It operates principally in two business segments: Investment Management Services, and Corporate Investments. It provides Investment Management Services to U.S. Global Investors Funds (USGIF) and ETF clients. Its Corporate Investments, through which the Company invests for its own account. The Company also serves as investment advisor to one European-based ETF. It invests in a range of industries ranging from natural resources, emerging markets, and infrastructure to precious metals and bond funds. The Company’s wholly owned subsidiaries include U.S. Global Investors (Bermuda) Limited, U.S. Global Investors (Canada) Limited, and U.S. Global Indices, 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.

U.S. Global Investors, Inc. has a Value Score of 68, which is considered to be undervalued.

U.S. Global Investors, Inc.’s price-earnings ratio is 11.7 compared to the industry median at 13.8. This means that it has a lower price relative to its earnings compared to its peers. This makes U.S. Global Investors, Inc. more attractive for value investors.

U.S. Global Investors, Inc.’s price-to-book ratio is higher than its peers. This could make U.S. Global Investors, Inc. less attractive for value investors when compared to the industry median at 1.06.

You can read more about U.S. Global Investors, 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.

Hywin Holdings Ltd - ADR’s Value Grade

Value Grade:

Hywin Holdings Ltd is a China-based company mainly engaged in the provision of third-party wealth management service. The Company primarily provide wealth management services, insurance brokerage services, asset management services and other services. Its wealth management solution platform serves its clients across lifecycles and both onshore and offshore. Its privately raised products consist of real estate products, and private equity and venture capital funds products.

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.

Hywin Holdings Ltd - ADR has a Value Score of 93, which is considered to be undervalued.

Hywin Holdings Ltd - ADR’s price-earnings ratio is 2.6 compared to the industry median at 13.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Hywin Holdings Ltd - ADR more attractive for value investors.

Hywin Holdings Ltd - ADR’s price-to-book ratio is higher than its peers. This could make Hywin Holdings Ltd - ADR less attractive for value investors when compared to the industry median at 1.06.

You can read more about Hywin Holdings Ltd - ADR’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 74, which is considered to be undervalued.

Rand Capital Corp’s price-earnings ratio is 6.2 compared to the industry median at 13.8. 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 1.06.

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.

UBS Group AG’s Value Grade

Value Grade:

UBS Group AG is a Switzerland-based holding company and conducts its operations through UBS AG and its subsidiaries. The company operates as a wealth manager with focused asset management and investment banking capabilities and a capital-light and cash-generative business model. The Company comprises four business divisions: Global Wealth Management, which provides tailored advice and solutions to its clients around the globe; Personal & Corporate Banking division provides comprehensive financial products and services to private, corporate and institutional clients in Switzerland; Asset Management division offers investment capabilities and styles across all traditional and alternative asset classes, as well as advisory support to institutions; Investment Bank provides investment advice, financial solutions and capital markets access to institutional, corporate and wealth management clients.

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.

UBS Group AG has a Value Score of 90, which is considered to be undervalued.

UBS Group AG’s price-earnings ratio is 3.1 compared to the industry median at 13.8. This means that it has a lower price relative to its earnings compared to its peers. This makes UBS Group AG more attractive for value investors.

UBS Group AG’s price-to-book ratio is lower than its peers. This could make UBS Group AG fairly attractive for value investors when compared to the industry median at 1.06.

You can read more about UBS Group AG’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.

Westwood Holdings Group, Inc.’s Value Grade

Value Grade:

Westwood Holdings Group, Inc. through its subsidiaries, manages investment assets and provides services. It provides investment advisory services to institutional investors, a family of mutual funds called the Westwood Funds, other mutual funds, individuals and clients of Westwood Trust. The Company?s segments include Advisory and Trust. The Advisory segment provides investment advisory services to corporate pension and profit-sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals, sub-advisory. It also provides investment management services to the Westwood Funds. The Company?s advisory business investment capabilities: United States Value Equity, Multi-Asset, Energy and Real Assets, Tactical Absolute Return, and Income Alternatives. The Trust segment provides trust and custodial services and participation in common trust funds that it sponsors to institutions and high-net worth individuals.

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.

Westwood Holdings Group, Inc. has a Value Score of 92, which is considered to be undervalued.

Westwood Holdings Group, Inc.’s price-earnings ratio is 9.3 compared to the industry median at 13.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Westwood Holdings Group, Inc. more attractive for value investors.

Westwood Holdings Group, Inc.’s price-to-book ratio is higher than its peers. This could make Westwood Holdings Group, Inc. less attractive for value investors when compared to the industry median at 1.06.

You can read more about Westwood Holdings 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.

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.
• Bank of New York Mellon Corp stock has a Value Grade of A.
• U.S. Global Investors, Inc. stock has a Value Grade of B.
• Hywin Holdings Ltd - ADR stock has a Value Grade of A.
• Rand Capital Corp stock has a Value Grade of B.
• UBS Group AG stock has a Value Grade of A.
• Westwood Holdings Group, 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 Wednesday, February 21
• 5 Undervalued Investment Management & Fund Operators Stocks for Tuesday, February 20
• Why GCM Grosvenor Inc’s (GCMG) Stock Is Down 4.19%
• 4 Undervalued Investment Management & Fund Operators Stocks for Monday, February 19

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.