Invesco (NYSE: JHG) and Janus Henderson Group (NYSE:JHG) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Volatility and Risk

Invesco has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, Janus Henderson Group has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Dividends

Invesco pays an annual dividend of $1.20 per share and has a dividend yield of 4.9%. Janus Henderson Group pays an annual dividend of $1.44 per share and has a dividend yield of 5.2%. Invesco pays out 44.4% of its earnings in the form of a dividend. Janus Henderson Group pays out 58.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Invesco has increased its dividend for 9 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Invesco and Janus Henderson Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invesco 0 6 7 0 2.54
Janus Henderson Group 2 6 0 0 1.75

Invesco presently has a consensus price target of $35.69, suggesting a potential upside of 46.82%. Janus Henderson Group has a consensus price target of $33.91, suggesting a potential upside of 21.40%. Given Invesco’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Invesco is more favorable than Janus Henderson Group.

Profitability

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

Net Margins Return on Equity Return on Assets
Invesco 21.64% 12.70% 3.61%
Janus Henderson Group 37.79% 11.43% 7.71%

Earnings & Valuation

This table compares Invesco and Janus Henderson Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Invesco $5.16 billion 1.94 $1.13 billion $2.70 9.00
Janus Henderson Group $2.18 billion 2.56 $655.50 million $2.48 11.26

Invesco has higher revenue and earnings than Janus Henderson Group. Invesco is trading at a lower price-to-earnings ratio than Janus Henderson Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

78.8% of Invesco shares are owned by institutional investors. Comparatively, 53.6% of Janus Henderson Group shares are owned by institutional investors. 1.8% of Invesco shares are owned by company insiders. Comparatively, 2.1% of Janus Henderson Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Invesco beats Janus Henderson Group on 11 of the 17 factors compared between the two stocks.

About Invesco

Invesco Ltd. is a publicly owned investment manager. The firm provides its services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds. It manages separate client-focused equity and fixed income portfolios. The firm also launches equity, fixed income, commodity, multi-asset, and balanced mutual funds for its clients. It launches equity, fixed income, multi-asset, and balanced exchange-traded funds. The firm also launches and manages private funds. It invests in the public equity and fixed income markets across the globe. The firm also invests in alternative markets, such as commodities and currencies. For the equity portion of its portfolio, it invests in growth and value stocks of large-cap, mid-cap, and small-cap companies. For the fixed income portion of its portfolio, the firm invests in convertibles, government bonds, municipal bonds, treasury securities, and cash. It also invests in short term and intermediate term bonds, investment grade and high yield bonds, taxable and tax-free bonds, senior secured loans, and structured securities such as asset-backed securities, mortgage-backed securities, and commercial mortgage-backed securities. The firm employs absolute return, global macro, and long/short strategies. It employs quantitative analysis to make its investments. The firm was formerly known as Invesco Plc, AMVESCAP plc, Amvesco plc, Invesco PLC, Invesco MIM, and H. Lotery & Co. Ltd. Invesco Ltd. was founded in December 1935 and is based in Atlanta, Georgia with an additional office in Hamilton, Bermuda.

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.

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