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.

Latest Investment Management & Fund Operators Stock News

Before choosing which top Investment Management & Fund Operators stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

There is a neutral fundamental outlook for the investment management and fund operators’ sub-industry. The long-term outlook is relatively healthy due to aging populations. Demographic trends are also favorable, as millennials come of age and baby boomers play “catch-up” with contributions to IRAs, driving a significant increase in retirement investments, in our view. Millennials are also maturing and beginning to save for retirement. Many companies will also benefit from legislation enacted designed to encourage saving for retirement. However, the shift from actively managed funds to ETFs and pressures on fee revenues could slightly offset this. Recent market volatility has also impacted equity funds. Firms could benefit from rising interest rates. Growth in assets under management (AUM) is a key driver for many firms in this industry. 2022 projections anticipate high-single-digit AUM growth, though near-term market volatility amid shifting sector allocations will likely keep AUM levels under pressure. At year end 2021, assets in all worldwide open-end funds totaled $71.1 trillion, up 13% from $63 trillion at year end 2020. Equity assets (which rose 19 % in 2021, to $33.6 trillion) equaled 47% of total fund assets. Bond funds (which rose 4.6% in 2021, to $13.7 trillion) accounted for 19% of total fund assets. Money market accounts (which increased by 6.0%, to $8.8 trillion) represented 12% of total assets, and other funds (including real estate and balanced funds, equaled $15.6 trillion, or 22% of total fund assets at year-end 2021. A rebound in asset values amid an economic recovery propelled the S&P Asset Management & Custody Banks Index up by 31.9% during 2021, versus a 26.7% rise in the S&P 1500 Index. Year to date through March 18, 2022, the sub-industry index declined by 13.5%, while the S&P 1500 Index declined by 6.2%.

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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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 Monday, May 22, 2023. 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.

Ashford Inc’s Value Grade

Value Grade:

Ashford Inc. is an asset management company, which provides products and services primarily to clients in the real estate and hospitality industries. The Company?s segments include REIT Advisory, Remington, Premier, INSPIRE, RED and OpenKey. The REIT Advisory segment provides asset management and advisory services to other entities. The Remington segment provides hotel management services. The Premier segment provides design, development, architectural, and project management services. The INSPIRE segment provides event technology and creative communications solutions services. OpenKey segment offers hospitality focused mobile key platform that provides a universal smartphone app for keyless entry into hotel guest rooms. RED segment is a provider of watersports activities and other travel and transportation services. It provides wholesaler, dealer manager and other broker-dealer services. It conducts its activities and owns substantially all of its assets primarily through Ashford 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.

Ashford Inc has a Value Score of 78, which is considered to be undervalued.

When you look at Ashford Inc’s price-to-sales ratio at 0.04 compared to the industry median at 3.88, this company has a lower price relative to revenue compared to its peers. This could make Ashford Inc’s stock more attractive for value investors.

Now, let’s assess Ashford Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 9.9, when compared to the industry median of 15.4, 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. Ashford Inc’s shareholder yield is lower than its industry median ratio of 3.71%. 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.

Lastly, let’s take a look at Ashford Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Ashford Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 11.95. This could make Ashford Inc more attractive because the lower P/FCF ratio indicates that Ashford 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.

Bain Capital Specialty Finance Inc’s Value Grade

Value Grade:

Bain Capital Specialty Finance, Inc. is an externally managed specialty finance company focused on lending to middle market companies. The Company is focused on generating income and to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last-out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. Its primary focus is capitalizing on opportunities within Bain Capital Credit's Senior Direct Lending Strategy. It is focused on providing risk-adjusted returns and income to its stockholders by investing primarily in middle-market companies with between 10 million dollars and 150 million dollars in earnings before interest, taxes, depreciation and amortization (EBITDA). The Company may also invest in mezzanine debt and other junior securities and in secondary purchases of assets or portfolios. It is externally managed by BCSF Advisors, LP.

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.

Bain Capital Specialty Finance Inc has a Value Score of 63, which is considered to be undervalued.

Bain Capital Specialty Finance Inc’s price-earnings ratio is 7.7 compared to the industry median at 13.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Bain Capital Specialty Finance Inc more attractive for value investors.

Bain Capital Specialty Finance Inc’s price-to-book ratio is higher than its peers. This could make Bain Capital Specialty Finance Inc less attractive for value investors when compared to the industry median at 1.04.

You can read more about Bain Capital Specialty Finance 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.

Blackstone Secured Lending Fund’s Value Grade

Value Grade:

Blackstone Secured Lending Fund is a non-diversified, closed-end management investment company. The Company's investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. It invests approximately 80% of its total assets in secured debt investments. The Company is focused on achieving its investment objectives primarily through originated loans and other securities, including syndicated loans, of private United States companies, typically in the form of first lien senior secured and unitranche loans (including first out/last out loans), and to a lesser extent, second lien, third lien, unsecured and subordinated loans and other debt and equity securities. The Company invests across various sectors, which includes Aerospace and Defense, Air Freight and Logistics, Building Products, Commercial Services and Supplies, and Health Care Providers and Services, among others. Blackstone Credit BDC Advisors LLC is the advisor of the Company.

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.

Blackstone Secured Lending Fund has a Value Score of 61, which is considered to be undervalued.

Blackstone Secured Lending Fund’s price-earnings ratio is 9.6 compared to the industry median at 13.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Blackstone Secured Lending Fund more attractive for value investors.

Blackstone Secured Lending Fund’s price-to-book ratio is lower than its peers. This could make Blackstone Secured Lending Fund fairly attractive for value investors when compared to the industry median at 1.04.

You can read more about Blackstone Secured Lending 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.

GCM Grosvenor Inc’s Value Grade

Value Grade:

GCM Grosvenor Inc. is an alternative asset management solution company. The Company provides investment solutions to primarily institutional clients who seek allocations to alternative investments, such as hedge fund strategies, private equity, real estate, infrastructure, and strategic investments. It operates customized separate accounts and commingled funds. The Company collaborates with its clients to construct investment portfolios across multiple investment strategies in the private and public markets, customized to meet their specific objectives. The Company also offers specialized commingled funds which span the alternatives investing universe that are developed to meet market demands for strategies and risk return objectives. The Company offers private markets and absolute return investment strategies. Its private markets consist of private equity, infrastructure, and real estate as well as certain strategies that span the full breadth of the platform.

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.

GCM Grosvenor Inc has a Value Score of 65, which is considered to be undervalued.

GCM Grosvenor Inc’s price-earnings ratio is 39.5 compared to the industry median at 13.0. This means that it has a higher price relative to its earnings compared to its peers. This makes GCM Grosvenor Inc less attractive for value investors.

You can read more about GCM Grosvenor 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.

Janus Henderson Group PLC’s Value Grade

Value Grade:

Janus Henderson Group PLC is an independent global asset manager. The Company specializes in active investment across all asset classes. It operates through the investment management business segment. The Company manages a range of actively managed investment products for institutional and retail investors across five capabilities: Equities, Fixed Income, Multi-Asset, Quantitative Equities and Alternatives. It operates across various product lines, distribution channels and geographic regions. The Company conducts its operations in North America, the United Kingdom (UK), continental Europe, Latin America, Japan, Asia and Australia.

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.

Janus Henderson Group PLC has a Value Score of 72, which is considered to be undervalued.

Janus Henderson Group PLC’s price-earnings ratio is 12.5 compared to the industry median at 13.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Janus Henderson Group PLC more attractive for value investors.

Janus Henderson Group PLC’s price-to-book ratio is lower than its peers. This could make Janus Henderson Group PLC fairly attractive for value investors when compared to the industry median at 1.04.

You can read more about Janus Henderson Group PLC’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.

Victory Capital Holdings Inc’s Value Grade

Value Grade:

Victory Capital Holdings, Inc. is a diversified asset management firm. The Company is focused on providing specialized investment strategies to institutions, intermediaries, retirement platforms, and individual investors. It has approximately 12 autonomous investment franchises and a solutions platform, Victory Capital, which offers a range of investment products, including actively and passively managed mutual funds, rules-based and active exchange traded funds (ETFs), institutional separate accounts, variable insurance products (VIPs), Environmental, Social, and Governance (ESG) and impact investment strategies, alternative investments, private closed end funds, and a 529 Education Savings Plan. It also offers its Victory Capitals strategies through third-party investment products, including mutual funds, third-party ETF model strategies, retail separately managed accounts (SMAs) and unified managed accounts (UMAs). Its investment adviser is Victory Capital Management 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.

Victory Capital Holdings Inc has a Value Score of 64, which is considered to be undervalued.

Victory Capital Holdings Inc’s price-earnings ratio is 9.2 compared to the industry median at 13.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Victory Capital Holdings Inc more attractive for value investors.

Victory Capital Holdings Inc’s price-to-book ratio is lower than its peers. This could make Victory Capital Holdings Inc more attractive for value investors when compared to the industry median at 1.04.

You can read more about Victory Capital 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.

Voya Financial Inc’s Value Grade

Value Grade:

Voya Financial, Inc. provides workplace savings and benefits products, solutions and technologies, along with investment management services. Its segments include Wealth Solutions, Health Solutions and Investment Management. Wealth Solutions segment provides retirement plan products and administration services to employers alongside a suite of financial wellness offerings to serve employees and plan participants. Health Solutions segment provides worksite employee benefits, decision support, financial wellness, and administrative products and services to mid-size and large corporate employers and professional associations. Investment Management segment serves both individual and institutional customers, offering them domestic and international fixed income, equity, multi-asset and alternative investment products and solutions across a range of geographies, investment styles and capitalization spectrums. It serves the needs of customers, workplace participants and institutional clients.

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.

Voya Financial Inc has a Value Score of 68, which is considered to be undervalued.

Voya Financial Inc’s price-earnings ratio is 14.7 compared to the industry median at 13.0. This means that it has a higher price relative to its earnings compared to its peers. This makes Voya Financial Inc less attractive for value investors.

Voya Financial Inc’s price-to-book ratio is lower than its peers. This could make Voya Financial Inc more attractive for value investors when compared to the industry median at 1.04.

You can read more about Voya Financial 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 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.

• Ashford Inc stock has a Value Grade of B.
• Bain Capital Specialty Finance Inc stock has a Value Grade of B.
• Blackstone Secured Lending Fund stock has a Value Grade of B.
• GCM Grosvenor Inc stock has a Value Grade of B.
• Janus Henderson Group PLC stock has a Value Grade of B.
• Victory Capital Holdings Inc stock has a Value Grade of B.
• Voya Financial Inc 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 Monday, May 22
• 4 Undervalued Investment Management & Fund Operators Stocks for Friday, May 19
• Is CaliberCos Inc (CWD) Stock a Good Investment?
• 6 Undervalued Investment Management & Fund Operators Stocks for Thursday, May 18

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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.