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.

Click the button below to learn more about A+ Investor and subscribe today.

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 Friday, September 06, 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.

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 82, which is considered to be undervalued.

When you look at Bexil Corp’s price-to-sales ratio at 3.78 compared to the industry median at 3.78, this company has a higher price relative to revenue compared to its peers. This could make Bexil Corp’s stock fairly attractive for value investors.

Bexil Corp’s price-earnings ratio is 7.97 compared to the industry median at 14.58. This means it has a lower share price relative to earnings compared to its peers. This could make Bexil Corp more attractive for value investors.

Now, let’s assess Bexil Corp’s EV/EBITDA ratio, also known as enterprise multiple. At 4.0, when compared to the industry median of 16.3, 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. Bexil Corp’s shareholder yield is higher than its industry median ratio of 1.77%. 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. Bexil Corp’s price-to-book ratio is lower than its industry median ratio of 1.05. This could make Bexil Corp more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Bexil Corp’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Bexil Corp’s price-to-free-cash-flow ratio is higher than its industry median ratio of 16.46. This could make Bexil Corp less attractive because the higher P/FCF ratio indicates that Bexil Corp 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.

Glassbridge Enterprises Inc’s Value Grade

Value Grade:

GlassBridge Enterprises, Inc. owns and operates an asset management business through various subsidiaries. The Company operates in Asset Management Business segment. The Company provides investment advisory services to third party investors through its managed funds, as well as separate managed accounts.

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.

Glassbridge Enterprises Inc has a Value Score of 63, which is considered to be undervalued.

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

You can read more about Glassbridge Enterprises 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 a closed-end, externally managed, diversified management investment company. The Company’s investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. The Company primarily invests in directly originated and privately negotiated first lien senior secured loans to privately held United States middle-market companies, which the Company generally defines as companies with less than $75 million in EBITDA, as may be adjusted for market disruptions, mergers and acquisitions-related charges and synergies, and other items. To a lesser extent, the Company may also invest in other types of securities including, first lien unitranche, second lien senior secured, unsecured, subordinated, and mezzanine loans, and equities in both private and public middle market companies. The Company is externally managed by Apollo Investment Management, L.P. (the Adviser).

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 65, which is considered to be undervalued.

MidCap Financial Investment Corp’s price-earnings ratio is 8.2 compared to the industry median at 14.6. 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.

Santech Holdings Ltd - ADR’s Value Grade

Value Grade:

Santech Holdings Ltd, formerly Hywin Holdings Ltd, is a consumer-focused technology company principally engaged in health management service business. The health management services mainly include providing medical examination, chronic disease management, immune system enhancement, and anti-aging solutions. The Company is also exploring new opportunities in technology, including but not limited to new retail, social e-commerce and metaverse. The Company mainly conducts its business within domestic market.

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.

Santech Holdings Ltd - ADR has a Value Score of 64, which is considered to be undervalued.

Santech Holdings Ltd - ADR’s price-to-book ratio is lower than its peers. This could make Santech Holdings Ltd - ADR more attractive for value investors when compared to the industry median at 1.05.

You can read more about Santech 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.

Virtus Investment Partners Inc’s Value Grade

Value Grade:

Virtus Investment Partners, Inc. provides investment management and related services to individuals and institutions. The Company offers investments strategies for individual and institutional investors in different investment product structures and through multiple distribution channels. The Company provides various asset classes (equity, fixed income, multi-asset and alternative), geographies (domestic, global, international, and emerging), market capitalizations (large, mid, and small), styles (growth, core, and value) and investment approaches (fundamental and quantitative). Its retail products include open-end funds and exchange traded funds (ETFs), as well as closed-end funds and retail separate accounts. Its institutional products are offered through separate accounts and pooled to a variety of institutional clients. The Company also provides sub advisory services to other investment advisers and serve as the collateral manager for structured 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.

Virtus Investment Partners Inc has a Value Score of 61, which is considered to be undervalued.

Virtus Investment Partners Inc’s price-earnings ratio is 13.5 compared to the industry median at 14.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Virtus Investment Partners Inc more attractive for value investors.

Virtus Investment Partners Inc’s price-to-book ratio is lower than its peers. This could make Virtus Investment Partners Inc more attractive for value investors when compared to the industry median at 1.05.

You can read more about Virtus Investment Partners 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 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.

• Bexil Corp stock has a Value Grade of A.
• Glassbridge Enterprises Inc stock has a Value Grade of B.
• MidCap Financial Investment Corp stock has a Value Grade of B.
• Santech Holdings Ltd - ADR stock has a Value Grade of B.
• Virtus Investment Partners Inc 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 Friday, September 06
• 6 Undervalued Investment Management & Fund Operators Stocks for Thursday, September 05
• 4 Undervalued Investment Management & Fund Operators Stocks for Wednesday, September 04
• 7 Undervalued Investment Management & Fund Operators Stocks for Tuesday, September 03

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.