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 Thursday, April 11, 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 over time. The Company conducts its investment management activities through its wholly owned subsidiary Gabelli & Company Investment Advisers, Inc. (GCIA) and its wholly owned subsidiary, 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 (collectively, Investment Partnerships), and separate accounts. It primarily manages assets across a range of risk and event arbitrage portfolios and in equity event-driven value strategies. It serves a variety of investors globally, including private wealth management clients, corporations, corporate pension and profit-sharing plans, foundations and endowments.

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 62, which is considered to be undervalued.

When you look at Associated Capital Group Inc’s price-to-sales ratio at 55.34 compared to the industry median at 3.93, 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 18.92 compared to the industry median at 14.08. 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 3.73%. 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 1.07. 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 14.33. 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.

Bexil Corp’s Value Grade

Value Grade:

Bexil Corporation is a holding company. The Company, through its subsidiary, Bexil Advisers LLC, is primarily engaged in investment management. The Company’s subsidiaries include Bexil Securities LLC and Bexil American Mortgage Inc. Bexil Advisers LLC is an investment adviser and investment manager of Dividend and Income Fund (DNIF), a closed end fund. Bexil American Mortgage Inc. is engaged in developing and monetizing its intellectual property, including domain names and registered service marks.

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.

Bexil Corp has a Value Score of 79, which is considered to be undervalued.

Bexil Corp’s price-earnings ratio is 8.4 compared to the industry median at 14.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Bexil Corp more attractive for value investors.

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

You can read more about Bexil 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.

Cion Investment Corp’s Value Grade

Value Grade:

CION Investment Corporation is an externally managed, non-diversified closed-end management investment company. The Company's investment objective is to generate current income and, to a lesser extent, capital appreciation for investors. Its portfolio is comprised primarily of investments in senior secured debt, including first lien loans, second lien loans and unitranche loans, and, to a lesser extent, collateralized securities, structured products and other similar securities, unsecured debt, and equity, of private and thinly traded United States middle-market companies. The Company's investment portfolio includes healthcare and pharmaceuticals, chemicals, plastics and rubber, high-tech industries, beverage, food and tobacco, capital equipment, banking, finance, insurance and real estate, aerospace and defense, construction and building, telecommunications, hotel, gaming, and leisure, automotive, and metals and mining. Its investment adviser is CION Investment 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.

Cion Investment Corp has a Value Score of 78, which is considered to be undervalued.

Cion Investment Corp’s price-earnings ratio is 6.2 compared to the industry median at 14.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Cion Investment Corp more attractive for value investors.

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

You can read more about Cion Investment 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.

Invesco Ltd’s Value Grade

Value Grade:

Invesco Ltd. is an independent investment management firm. It serves the retail and institutional markets within the investment management industry in the Americas, Europe, Middle East, and Africa and Asia-Pacific in 120 countries. It offers a range of investment strategies across asset classes, investment styles, and geographies. Its asset classes include equity, fixed income, balanced, alternatives and money market. Its retail assets under management include mutual funds, exchange-traded funds, separately managed accounts, individual savings accounts, investment companies with variable capital, investment trusts, open-end mutual funds, unit investment trusts, and variable insurance funds. Its institutional assets include institutional separate accounts, private funds, open-end mutual funds, and collective trust funds. Its client base includes public and private entities, unions, non-profit organizations, endowments, foundations, financial institutions, and sovereign wealth 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.

Invesco Ltd has a Value Score of 92, which is considered to be undervalued.

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

You can read more about Invesco Ltd’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 externally managed business development company (BDC). 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. The Company invests in businesses that have sustainable, differentiated and market proven products. The Company invest at least 70 % of total assets in qualifying assets and provide managerial assistance to the portfolio companies in which it invests. The Company's portfolio includes professional and business services, manufacturing, consumer product, software, distribution, automotive, and oil and gas. The Company's investment adviser is Rand Capital Management, LLC (RCM).

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 72, which is considered to be undervalued.

Rand Capital Corp’s price-earnings ratio is 5.5 compared to the industry median at 14.1. 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.

Templeton Emerging Markets Income Fund’s Value Grade

Value Grade:

Templeton Emerging Markets Income Fund (the Fund) is a closed-end management investment company. The Fund seeks high, current income, with a secondary goal of capital appreciation, by investing, under normal market conditions, at least 80% of its net assets in income-producing securities of sovereign or sovereign-related entities and private sector companies in emerging market countries. The Fund invests in bonds from emerging markets around the world to generate income for the Fund, seeking opportunities while monitoring changes in interest rates, currency exchange rates and credit risk. Its investment portfolio includes foreign government and agency securities, corporate bonds, convertible bonds, and short-term investments. Its markets are located in the Asia Pacific region, Eastern Europe, the Middle East, Central and South America and Africa. The Fund's investment manager is Franklin Advisers, Inc.

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.

Templeton Emerging Markets Income Fund has a Value Score of 66, which is considered to be undervalued.

Templeton Emerging Markets Income Fund’s price-earnings ratio is 7.4 compared to the industry median at 14.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Templeton Emerging Markets Income Fund more attractive for value investors.

Templeton Emerging Markets Income Fund’s price-to-book ratio is higher than its peers. This could make Templeton Emerging Markets Income Fund less attractive for value investors when compared to the industry median at 1.07.

You can read more about Templeton Emerging Markets Income 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.

180 Degree Capital Corp’s Value Grade

Value Grade:

180 Degree Capital Corp. is a non-diversified closed-end management investment company. The Company operates as an internally managed investment company. The Company’s investment objective is to generate capital appreciation and current income from investments and investment-related activities such as managed funds and accounts. The Company invests its assets in various industries, including advertising, application software, asset management and custody banks, biotechnology, communications equipment, construction machinery and heavy trucks, electronic manufacturing services, fertilizers and agricultural chemicals, health care equipment, health care technology, interactive media and services, pharmaceuticals, restaurants, specialized finance, specialty chemicals, technology hardware, storage and peripherals, trading companies and distributors, miscellaneous common stocks industries, steel and apparel, accessories and luxury goods.

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.

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

180 Degree Capital Corp’s price-to-book ratio is higher than its peers. This could make 180 Degree Capital Corp less attractive for value investors when compared to the industry median at 1.07.

You can read more about 180 Degree 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 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.

• Associated Capital Group Inc stock has a Value Grade of B.
• Bexil Corp stock has a Value Grade of B.
• Cion Investment Corp stock has a Value Grade of B.
• Invesco Ltd stock has a Value Grade of A.
• Rand Capital Corp stock has a Value Grade of B.
• Templeton Emerging Markets Income Fund stock has a Value Grade of B.
• 180 Degree Capital Corp stock has a Value Grade of B.

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 Thursday, April 11
• 7 Undervalued Investment Management & Fund Operators Stocks for Wednesday, April 10
• Why Artisan Partners Asset Management Inc’s (APAM) Stock Is Down 4.49%
• Why Blackstone Inc’s (BX) Stock Is Down 4.48%

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.