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, June 19, 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.

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 asset management segment includes investment advisory services provided by Bimini Advisors Holdings, LLC (Bimini Advisors) to Orchid Island Capital, Inc (Orchid). Its portfolio consists of two categories of Agency mortgage-backed securities (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. The Company’s wholly owned subsidiaries include is Bimini Capital Management, Inc, Royal Palm, and Bimini Advisors. Royal Palm maintains an investment portfolio, consisting primarily of MBS.

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 85, which is considered to be undervalued.

When you look at Bimini Capital Management Inc’s price-to-sales ratio at 0.45 compared to the industry median at 3.74, this company has a lower price relative to revenue compared to its peers. This could make Bimini Capital Management Inc’s stock more 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. Bimini Capital Management Inc’s shareholder yield is lower than its industry median ratio of 3.34%. 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. Bimini Capital Management Inc’s price-to-book ratio is lower than its industry median ratio of 1.05. This could make Bimini Capital Management Inc more attractive to investors looking for a new addition to their portfolio.

BrightSphere Investment Group Inc’s Value Grade

Value Grade:

Brightsphere Investment Group Inc. is a diversified asset management company. The Company provides investment management services globally, predominantly to institutional investors. The Company operates through its subsidiary, Acadian Asset Management LLC (Acadian). Acadian is a systematic investment manager of active global, international equity and alternative strategies. The Company operates through one segment: the Quant and Solutions segment. The Quant and Solutions segment is comprised of leverage data and technology in a computational, factor-based investment process across a range of asset classes in developed and emerging markets, including global, non- United States and small-cap equities, as well as managed volatility, systematic macro, equity alternatives, and credit strategies. Through Acadian, the Company offers a diverse range of actively managed investment strategies and products to institutional investors around the globe.

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.

BrightSphere Investment Group Inc has a Value Score of 65, which is considered to be undervalued.

BrightSphere Investment Group Inc’s price-earnings ratio is 13.4 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 BrightSphere Investment Group Inc more attractive for value investors.

You can read more about BrightSphere Investment 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.

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 61, which is considered to be undervalued.

MidCap Financial Investment Corp’s price-earnings ratio is 8.7 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 MidCap Financial Investment Corp more attractive for value investors.

MidCap Financial Investment Corp’s price-to-book ratio is lower than its peers. This could make MidCap Financial Investment Corp fairly 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.

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 80, which is considered to be undervalued.

Triplepoint Venture Growth BDC Corp’s price-to-book ratio is lower than its peers. This could make Triplepoint Venture Growth BDC Corp fairly attractive for value investors when compared to the industry median at 1.05.

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 70, 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.

Wins Finance Holdings Inc’s Value Grade

Value Grade:

Wins Finance Holdings Inc. is an integrated financing solution provider that assists Chinese small and medium enterprises (SMEs) that have limited access to financing and enables them to obtain funding for business development. The Company is focused on identifying value accretive investment opportunities and assets in China and the United States. The Company operates through three segments: the provision of financial services, medical consulting services and sales medical equipment in the PRC domestic market. Its business lines include financial leasing, financial advisory services and medical equipment sales and medical service consulting. The financial leasing business is engaged in providing direct equipment leasing or purchase-lease-back services to SMEs. The financial advisory services business is engaged in providing financial advisory services to its clients. The Company also provides financial consultancy services to clients by entering into consultancy service agreements.

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.

Wins Finance Holdings Inc has a Value Score of 90, which is considered to be undervalued.

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

You can read more about Wins Finance Holdings 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 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.

• Bimini Capital Management Inc stock has a Value Grade of A.
• BrightSphere Investment Group Inc stock has a Value Grade of B.
• MidCap Financial Investment Corp stock has a Value Grade of B.
• Triplepoint Venture Growth BDC Corp stock has a Value Grade of B.
• 180 Degree Capital Corp stock has a Value Grade of B.
• Wins Finance Holdings Inc stock has a Value Grade of A.

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, June 19
• 4 Undervalued Investment Management & Fund Operators Stocks for Tuesday, June 18
• Why Highest Performances Holdings Inc (ADR)’s (HPH) Stock Is Down 5.23%
• 3 Undervalued Investment Management & Fund Operators Stocks for Monday, June 17

AAII Disclaimer

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