Hamilton Lane (NASDAQ: HLNE) and Manning & Napier (NYSE:MN) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Hamilton Lane and Manning & Napier, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hamilton Lane 0 3 2 0 2.40
Manning & Napier 0 3 0 0 2.00

Hamilton Lane presently has a consensus target price of $21.25, suggesting a potential downside of 5.35%. Manning & Napier has a consensus target price of $6.00, suggesting a potential upside of 64.38%. Given Manning & Napier’s higher possible upside, analysts clearly believe Manning & Napier is more favorable than Hamilton Lane.

Insider and Institutional Ownership

61.7% of Hamilton Lane shares are held by institutional investors. Comparatively, 70.9% of Manning & Napier shares are held by institutional investors. 2.5% of Manning & Napier shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Hamilton Lane and Manning & Napier’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hamilton Lane N/A N/A N/A
Manning & Napier 3.41% 34.28% 20.97%

Dividends

Hamilton Lane pays an annual dividend of $0.70 per share and has a dividend yield of 3.1%. Manning & Napier pays an annual dividend of $0.32 per share and has a dividend yield of 8.8%. Manning & Napier pays out 60.4% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Hamilton Lane and Manning & Napier’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hamilton Lane $192.96 million 2.24 $87.34 million N/A N/A
Manning & Napier $229.41 million 0.24 $80.47 million $0.53 6.89

Hamilton Lane has higher revenue, but lower earnings than Manning & Napier.

Summary

Manning & Napier beats Hamilton Lane on 8 of the 13 factors compared between the two stocks.

About Hamilton Lane

Hamilton Lane Incorporated is a global private markets investment solutions provider. The Company works with its clients to conceive, structure, build out, manage and monitor portfolios of private markets funds and direct investments, and it helps them access a set of such investment opportunities around the world. It offers a range of investment solutions across a range of private markets, including private equity, private credit, real estate, infrastructure, natural resources, growth equity and venture capital. These solutions are constructed from a range of investment types, including primary investments in funds managed by third-party managers, direct/co-investments alongside such funds and acquisitions of secondary stakes in such funds, with a range of its clients utilizing multiple investment types. These solutions are offered in a range of formats covering some or all phases of private markets investment programs, such as Customized Separate Accounts and Specialized Funds.

About Manning & Napier

Manning & Napier, Inc. is an independent investment management company. The Company operates through investment management industry segment. It provides a range of investment solutions through separately managed accounts, mutual funds and collective investment trust funds, as well as a range of consultative services. It offers equity, fixed income and alternative strategies, as well as a range of blended asset portfolios, such as life cycle funds. It serves a client base of high net worth individuals and institutions, including 401(k) plans, pension plans, Taft-Hartley plans (Taft-Hartley), endowments and foundations. It offers its investment management capabilities through direct sales to high net worth individuals and institutions, as well as through third-party intermediaries, platforms and institutional investment consultants. Its investment management offerings include approximately 40 separate account composites, and over 60 mutual funds and collective investment trusts.

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