Analyzing Manning & Napier (NYSE:MN) & B. Riley Financial (NASDAQ:RILY)

Manning & Napier (NYSE:MNGet Rating) and B. Riley Financial (NASDAQ:RILYGet Rating) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Valuation & Earnings

This table compares Manning & Napier and B. Riley Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manning & Napier $145.58 million 1.62 $25.10 million $0.98 12.99
B. Riley Financial $1.74 billion 0.87 $445.05 million $5.92 9.19

B. Riley Financial has higher revenue and earnings than Manning & Napier. B. Riley Financial is trading at a lower price-to-earnings ratio than Manning & Napier, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Manning & Napier and B. Riley Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manning & Napier 14.32% 26.79% 14.55%
B. Riley Financial 13.40% 26.88% 3.87%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Manning & Napier and B. Riley Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manning & Napier 0 0 0 0 N/A
B. Riley Financial 0 0 0 0 N/A

Volatility and Risk

Manning & Napier has a beta of 2.4, meaning that its stock price is 140% more volatile than the S&P 500. Comparatively, B. Riley Financial has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Insider and Institutional Ownership

49.7% of Manning & Napier shares are held by institutional investors. Comparatively, 59.1% of B. Riley Financial shares are held by institutional investors. 19.0% of Manning & Napier shares are held by company insiders. Comparatively, 26.2% of B. Riley Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Manning & Napier pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. B. Riley Financial pays an annual dividend of $4.00 per share and has a dividend yield of 7.4%. Manning & Napier pays out 20.4% of its earnings in the form of a dividend. B. Riley Financial pays out 67.6% 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. Manning & Napier has raised its dividend for 1 consecutive years.

Manning & Napier Company Profile (Get Rating)

Manning & Napier, Inc. is publicly owned investment manager. It provides its services to net worth individuals and institutions, including 401(k) plans, pension plans, taft-hartley plans, endowments and foundations. The firm manages separate client-focused equity and fixed income portfolios. It invests in the public equity and fixed income markets of the United States. The firm employs fundamental analysis along with a combination of bottom-up and top-down stock picking approach to create its portfolios. Manning & Napier, Inc. was founded in 1970 and is based in Fairport, New York with additional offices in Dublin, Ohio; St. Petersburg, Florida; and Chicago, Illinois.

B. Riley Financial Company Profile (Get Rating)

B. Riley Financial, Inc., through its subsidiaries, provides investment banking and financial services to corporate, institutional, and high net worth clients in North America, Australia, and Europe. The company operates in six segments: Capital Markets, Wealth Management, Auction and Liquidation, Financial Consulting, Principal Investments-Communications, and Brands. The Capital Markets segments offers investment banking, corporate finance, financial advisory, research, securities lending and sales, and trading services; merger and acquisitions, restructuring advisory, initial and secondary public offerings, and institutional private placements services; asset management services; and trades in equity securities. The Wealth Management segment provides wealth management and tax services. The Auction and Liquidation Segment offers retail store liquidation, and wholesale and industrial assets disposition services. The Financial Consulting segment provides bankruptcy, forensic accounting, litigation support, operations management and real estate consulting, and valuation and appraisal services. The Principal Investments-Communications segment provides consumer Internet access through United Online under the NetZero and Juno brands; VoIP communication and related products, and subscription services through magicJack; and mobile phone services and devices through Marconi Wireless. The Brands segments provides licensing of a brand investment portfolio, including Catherine Malandrino, English Laundry, Joan Vass, Kensie Girl, Limited Too, and Nanette Lepore. It also offers advisory services; brokerage services; senior secured and second lien secured loans to middle market public and the private U.S. companies; and consulting services. The company was formerly known as Great American Group, Inc. and changed its name to B. Riley Financial, Inc. in November 2014. The company was founded in 1973 and is headquartered in Los Angeles, California.

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