Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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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5 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 5 undervalued stocks in the Investment Management & Fund Operators industry for Tuesday, February 27, 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.

Associated Capital Group Inc’s Value Grade

Value Grade:

Associated Capital Group, Inc. is a diversified global financial services company. The Company provides alternative investment management services and operates a direct investment business that invests in businesses that fit its criteria. The Company primarily manages assets across a range of risk and event arbitrage portfolios and in equity event-driven value strategies. It conducts its investment management activities through its wholly owned subsidiaries, Gabelli & Company Investment Advisers, Inc. (GCIA) and Gabelli & Partners, LLC (Gabelli & Partners). GCIA and Gabelli & Partners together serve as general partners or investment managers to investment funds, including limited partnerships and offshore companies, and separate accounts. It serves a variety of investors, including private wealth management clients, corporations, corporate pension and profit-sharing plans, foundations and endowments, as well as serving as sub-advisor to certain third-party investment funds.

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.

Associated Capital Group Inc has a Value Score of 61, which is considered to be undervalued.

When you look at Associated Capital Group Inc’s price-to-sales ratio at 56.37 compared to the industry median at 3.71, this company has a higher price relative to revenue compared to its peers. This could make Associated Capital Group Inc’s stock less attractive for value investors.

Associated Capital Group Inc’s price-earnings ratio is 19.19 compared to the industry median at 13.88. This means it has a higher share price relative to earnings compared to its peers. This could make Associated Capital Group Inc less attractive for value investors.

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. Associated Capital Group Inc’s shareholder yield is lower than its industry median ratio of 3.55%. 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. Associated Capital Group Inc’s price-to-book ratio is lower than its industry median ratio of 1.08. This could make Associated Capital Group Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Associated Capital Group Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Associated Capital Group Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 15.23. This could make Associated Capital Group Inc more attractive because the lower P/FCF ratio indicates that Associated Capital Group Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

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.

AMTD IDEA Group - ADR’s price-earnings ratio is 0.4 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 AMTD IDEA Group - ADR more attractive for value investors.

AMTD IDEA Group - ADR’s price-to-book ratio is higher than its peers. This could make AMTD IDEA Group - ADR less attractive for value investors when compared to the industry median at 1.08.

You can read more about AMTD IDEA Group - 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.

Bimini Capital Management Inc’s Value Grade

Value Grade:

Bimini Capital Management, Inc. is a specialty finance company. The Company operates through two segments: the asset management segment and the investment portfolio segment. The investment portfolio segment includes the investment activities conducted at Bimini Capital?s wholly owned subsidiary, Royal Palm Capital, LLC (Royal Palm). The investment portfolio segment includes the investment activities conducted by Royal Palm. The Company?s principal wholly owned operating subsidiary is Royal Palm Capital, LLC. Royal Palm Capital, LLC maintains an investment portfolio, consisting primarily of residential mortgage-backed securities (MBS) issued and guaranteed by a federally chartered corporation or agency (Agency MBS). Its portfolio consists of two categories of Agency MBS: traditional pass-through Agency MBS, such as mortgage pass-through certificates and collateralized mortgage obligations, and structured Agency MBS, such as interest-only securities and principal-only securities.

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.

Bimini Capital Management Inc has a Value Score of 67, which is considered to be undervalued.

Bimini Capital Management Inc’s price-to-book ratio is higher than its peers. This could make Bimini Capital Management Inc less attractive for value investors when compared to the industry median at 1.08.

You can read more about Bimini Capital Management 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.

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 11.8 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 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 1.08.

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.

Blue Owl Capital Corp’s Value Grade

Value Grade:

Blue Owl Capital Corporation, formerly Owl Rock Capital Corporation, is a specialty finance and business development company. The Company provides direct lending solutions to United States middle-market companies. Its investment objective is to generate current income, and to a lesser extent, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns, including senior secured, subordinated or mezzanine loans and equity-related instruments. Its portfolio by asset type includes first lien senior secured, second lien senior secured, common equity, preferred equity, unsecured debt and investment funds and vehicles. Its portfolio by industry includes Internet software and services, insurance, food and beverage, manufacturing, asset-based lending and fund finance, healthcare providers and services, healthcare technology, financial services, distribution, consumer products and others. It is managed by Blue Owl Credit Advisors 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.

Blue Owl Capital Corp has a Value Score of 67, which is considered to be undervalued.

Blue Owl Capital Corp’s price-earnings ratio is 7.4 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 Blue Owl Capital Corp more attractive for value investors.

Blue Owl Capital Corp’s price-to-book ratio is higher than its peers. This could make Blue Owl Capital Corp less attractive for value investors when compared to the industry median at 1.08.

You can read more about Blue Owl 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.

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 5 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.

• Associated Capital Group Inc stock has a Value Grade of B.
• AMTD IDEA Group - ADR stock has a Value Grade of A.
• Bimini Capital Management Inc stock has a Value Grade of B.
• U.S. Global Investors, Inc. stock has a Value Grade of B.
• Blue Owl Capital Corp stock has a Value Grade of B.

Now that you have a bit more background about each of the 5 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.

• 5 Undervalued Investment Management & Fund Operators Stocks for Tuesday, February 27
• 5 Undervalued Investment Management & Fund Operators Stocks for Monday, February 26
• Why Bridge Investment Group Holdings Inc’s (BRDG) Stock Is Down 5.92%
• Why CI Financial Corp’s (CIX) Stock Is Down 4.36%

AAII Disclaimer

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