Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 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 6 undervalued stocks in the Investment Management & Fund Operators industry for Wednesday, April 17, 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.

Affiliated Managers Group, Inc.’s Value Grade

Value Grade:

Affiliated Managers Group, Inc. is a global independent investment management company. The Company is focused on investing in a range of partner-owned investment firms, known as Affiliates. Its Affiliates provide a diverse range of differentiated investment strategies designed to assist institutional and wealth clients worldwide in achieving their investment objectives. Its Affiliates also provide investment management and customized investment counseling and fiduciary services to high-net worth individuals and families and institutional clients. Its Affiliates distribute their investment services and products to institutional and wealth clients through direct sales and relationships with consultants and intermediaries around the world through their own business development capabilities. Its Affiliates manage assets for investors in more than 50 countries. It manages its assets across a range of private markets, liquid alternative and differentiated long-only investment strategies.

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.

Affiliated Managers Group, Inc. has a Value Score of 70, which is considered to be undervalued.

When you look at Affiliated Managers Group, Inc.’s price-to-sales ratio at 2.61 compared to the industry median at 3.69, this company has a lower price relative to revenue compared to its peers. This could make Affiliated Managers Group, Inc.’s stock more attractive for value investors.

Affiliated Managers Group, Inc.’s price-earnings ratio is 9.85 compared to the industry median at 13.72. This means it has a lower share price relative to earnings compared to its peers. This could make Affiliated Managers Group, Inc. more attractive for value investors.

Now, let’s assess Affiliated Managers Group, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 11.0, when compared to the industry median of 15.6, 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. Affiliated Managers Group, Inc.’s shareholder yield is higher than its industry median ratio of 3.74%. 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. Affiliated Managers Group, Inc.’s price-to-book ratio is higher than its industry median ratio of 1.02. This could make Affiliated Managers Group, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Affiliated Managers 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. Affiliated Managers Group, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.18. This could make Affiliated Managers Group, Inc. more attractive because the lower P/FCF ratio indicates that Affiliated Managers 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.

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 65, which is considered to be undervalued.

U.S. Global Investors, Inc.’s price-earnings ratio is 12.4 compared to the industry median at 13.7. 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 1.02.

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 95, which is considered to be undervalued.

Hywin Holdings Ltd - ADR’s price-earnings ratio is 1.4 compared to the industry median at 13.7. 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 1.02.

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.

Noah Holdings Limited (ADR)’s Value Grade

Value Grade:

Noah Holdings Limited is a wealth management service provider with a focus on global wealth investment and asset allocation services for high net worth individuals and enterprises in China. The Company operates through three segments: wealth management, asset management and Internet finance. It also provides Internet finance services to clients in China. It provides direct access to China's high net worth population. With approximately 1,100 relationship managers in over 130 branch offices, its coverage network includes China's regions where high net worth population is concentrated, including the Yangtze River Delta, the Pearl River Delta, the Bohai Rim and other regions. Its product offerings consist primarily of over-the-counter (OTC) wealth management and OTC asset management products, mutual fund products and asset management plans originated in China and designed to cater to the needs of China's high net worth population.

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.

Noah Holdings Limited (ADR) has a Value Score of 96, which is considered to be undervalued.

Noah Holdings Limited (ADR)’s price-earnings ratio is 6.0 compared to the industry median at 13.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Noah Holdings Limited (ADR) more attractive for value investors.

Noah Holdings Limited (ADR)’s price-to-book ratio is higher than its peers. This could make Noah Holdings Limited (ADR) less attractive for value investors when compared to the industry median at 1.02.

You can read more about Noah Holdings Limited (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.

Triplepoint Venture Growth BDC Corp’s Value Grade

Value Grade:

TriplePoint Venture Growth BDC Corp. is an externally managed, closed-end, non-diversified management investment company that operates as a business development company. It is focused on providing customized debt financing with warrants and direct equity investments to venture growth stage companies in technology and other high growth industries backed by a select group of venture capital firms. Its investment objective is to maximize its total return to stockholders primarily in the form of current income and, to a lesser extent, capital appreciation by lending primarily with warrants to venture growth stage companies focused on technology and other high growth industries backed by TriplePoint Capital LLC (TPC) select group of leading venture capital investors. TPC is a Sand Hill Road-based global investment platform, which provides customized debt financing, leasing, direct equity investments and other complementary solutions. Its investment adviser is TriplePoint Advisers 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.

Triplepoint Venture Growth BDC Corp has a Value Score of 78, which is considered to be undervalued.

Triplepoint Venture Growth BDC Corp’s price-to-book ratio is higher than its peers. This could make Triplepoint Venture Growth BDC Corp less attractive for value investors when compared to the industry median at 1.02.

You can read more about Triplepoint Venture Growth BDC 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.

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 1.02.

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 6 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.

• Affiliated Managers Group, Inc. stock has a Value Grade of B.
• U.S. Global Investors, Inc. stock has a Value Grade of B.
• Hywin Holdings Ltd - ADR stock has a Value Grade of A.
• Noah Holdings Limited (ADR) stock has a Value Grade of A.
• Triplepoint Venture Growth BDC Corp 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 6 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.

• 6 Undervalued Investment Management & Fund Operators Stocks for Wednesday, April 17
• 4 Undervalued Investment Management & Fund Operators Stocks for Tuesday, April 16
• What You Need to Know About Northern Trust Corp's Q1 Earnings
• Why Noah Holdings Limited (ADR)’s (NOAH) Stock Is Down 5.57%

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.