Critical Review: Janus Henderson Group (NYSE:JHG) versus Barings Participation Investors (NYSE:MPV)

Barings Participation Investors (NYSE:MPV) and Janus Henderson Group (NYSE:JHG) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Valuation and Earnings

This table compares Barings Participation Investors and Janus Henderson Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barings Participation Investors	N/A	N/A	N/A	N/A	N/A
Janus Henderson Group	$2.47 billion	2.84	$408.90 million	$3.41	13.34

Janus Henderson Group has higher revenue and earnings than Barings Participation Investors.

Analyst Recommendations

This is a summary of current ratings and price targets for Barings Participation Investors and Janus Henderson Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barings Participation Investors	0	0	0	0	0.00
Janus Henderson Group	0	3	8	1	2.83

Janus Henderson Group has a consensus target price of $48.11, suggesting a potential upside of 5.77%. Given Janus Henderson Group’s stronger consensus rating and higher probable upside, analysts clearly believe Janus Henderson Group is more favorable than Barings Participation Investors.

Profitability

This table compares Barings Participation Investors and Janus Henderson Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barings Participation Investors	N/A	N/A	N/A
Janus Henderson Group	19.82%	12.35%	8.20%

Insider & Institutional Ownership

87.9% of Janus Henderson Group shares are held by institutional investors. 1.4% of Barings Participation Investors shares are held by company insiders. Comparatively, 19.6% of Janus Henderson Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Barings Participation Investors has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Janus Henderson Group has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.

Dividends

Barings Participation Investors pays an annual dividend of $1.48 per share and has a dividend yield of 7.5%. Janus Henderson Group pays an annual dividend of $1.60 per share and has a dividend yield of 3.5%. Janus Henderson Group pays out 46.9% of its earnings in the form of a dividend. Janus Henderson Group has increased its dividend for 1 consecutive years.

Summary

Janus Henderson Group beats Barings Participation Investors on 12 of the 14 factors compared between the two stocks.

About Barings Participation Investors

Barings Participation Investors is a closed ended fixed income mutual fund launched and managed by Barings LLC. The fund invests in the fixed income markets of the United States. It primarily invests in below-investment grade, long-term corporate debt obligations which are directly purchased from its issuers. The fund also seeks to invest in warrants, conversion rights, or other equity related instruments. It benchmarks the performance of its portfolio against Standard and Poor's Industrials Composite, Russell 2000 Index, Lehman Brothers U.S. High Yield Index, and Lehman Brothers Intermediate U.S. Credit Index. The fund was formerly known as Babson Capital Participation Investors. Barings Participation Investors was formed on April 7, 1988 and is domiciled in the United States.

About Janus Henderson Group

Janus Henderson Group plc is an asset management holding entity. Through its subsidiaries, the firm provides services to institutional, retail clients, and high net worth clients. It manages separate client-focused equity and fixed income portfolios. The firm also manages equity, fixed income, and balanced mutual funds for its clients. It invests in public equity and fixed income markets, as well as invests in real estate and private equity. Janus Henderson Group plc was founded in 1934 and is based in London, United Kingdom with additional offices in Jersey, United Kingdom and Sydney, Australia.