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 Friday, April 26, 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 92, which is considered to be undervalued.

When you look at AMTD IDEA Group - ADR’s price-to-sales ratio at 0.44 compared to the industry median at 3.88, 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 0.37 compared to the industry median at 13.98. 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 15.7, 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 3.76%. 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 1.05. This could make AMTD IDEA Group - ADR more attractive to investors looking for a new addition to their portfolio.

MidCap Financial Investment Corp’s Value Grade

Value Grade:

MidCap Financial Investment Corporation is an externally managed, business development company. The Company’s investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. Its portfolio is comprised primarily of investments in debt, including secured and unsecured debt of private middle-market companies. Its portfolio also includes equity interests such as common stock, preferred stock, warrants or options. The Company invests in various industry sectors, such as Advertising, Printing & Publishing; Automotive; Aviation and Consumer Transport; Beverage, Food & Tobacco; Business Services; Chemicals, Plastics & Rubber; Construction & Building; Consumer Goods; Diversified Investment Vehicles, Banking, Finance, Real Estate; Healthcare & Pharmaceuticals; Hotel, Gaming, Leisure, Restaurants; Manufacturing, Capital Equipment; Telecommunications; Utilities, and others. Its investment advisor is Apollo Investment Management, L.P.

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.

MidCap Financial Investment Corp has a Value Score of 63, which is considered to be undervalued.

MidCap Financial Investment Corp’s price-earnings ratio is 8.3 compared to the industry median at 14.0. This means that it has a lower price relative to its earnings compared to its peers. This makes MidCap Financial Investment Corp more attractive for value investors.

MidCap Financial Investment Corp’s price-to-book ratio is higher than its peers. This could make MidCap Financial Investment Corp less attractive for value investors when compared to the industry median at 1.05.

You can read more about MidCap Financial 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.

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 97, which is considered to be undervalued.

Noah Holdings Limited (ADR)’s price-earnings ratio is 5.9 compared to the industry median at 14.0. 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 1.05.

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.

Royce Value Trust Inc’s Value Grade

Value Grade:

Royce Value Trust, Inc. is a diversified, closed-end investment company. The Company primarily invests in small-cap securities. The Company’s portfolio sectors include industrials, financials, information technology, materials, healthcare, consumer discretionary, energy, consumer staples, real estate, and communication services. The Company's investment advisor is Royce & Associates, LP. Royce & Associates, LP primarily conducts business using the name Royce Investment Partners (Royce).

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.

Royce Value Trust Inc has a Value Score of 63, which is considered to be undervalued.

Royce Value Trust Inc’s price-earnings ratio is 4.9 compared to the industry median at 14.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Royce Value Trust Inc more attractive for value investors.

Royce Value Trust Inc’s price-to-book ratio is higher than its peers. This could make Royce Value Trust Inc less attractive for value investors when compared to the industry median at 1.05.

You can read more about Royce Value Trust 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.

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 67, which is considered to be undervalued.

Templeton Emerging Markets Income Fund’s price-earnings ratio is 7.0 compared to the industry median at 14.0. 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 1.05.

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 1.05.

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.

• AMTD IDEA Group - ADR stock has a Value Grade of A.
• MidCap Financial Investment Corp stock has a Value Grade of B.
• Noah Holdings Limited (ADR) stock has a Value Grade of A.
• Royce Value Trust Inc 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 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 Friday, April 26
• 5 Undervalued Investment Management & Fund Operators Stocks for Thursday, April 25
• What You Need to Know About Alliancebernstein Holding LP's Q1 Earnings
• What You Need to Know About Federated Hermes Inc's Q1 Earnings

AAII Disclaimer

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