Virtus Investment Partners (NASDAQ:VRTS – Get Free Report) and ONEX (OTCMKTS:ONEXF – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.
Insider and Institutional Ownership
80.5% of Virtus Investment Partners shares are owned by institutional investors. Comparatively, 0.7% of ONEX shares are owned by institutional investors. 6.4% of Virtus Investment Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Virtus Investment Partners has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, ONEX has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Virtus Investment Partners | 2 | 2 | 1 | 0 | 1.80 |
| ONEX | 0 | 2 | 3 | 0 | 2.60 |
Virtus Investment Partners currently has a consensus price target of $143.00, suggesting a potential upside of 8.72%. Given Virtus Investment Partners’ higher probable upside, equities analysts clearly believe Virtus Investment Partners is more favorable than ONEX.
Profitability
This table compares Virtus Investment Partners and ONEX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Virtus Investment Partners | 13.42% | 21.56% | 5.27% |
| ONEX | 63.83% | 5.24% | 4.21% |
Dividends
Virtus Investment Partners pays an annual dividend of $9.80 per share and has a dividend yield of 7.5%. ONEX pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Virtus Investment Partners pays out 55.8% of its earnings in the form of a dividend. ONEX pays out 4.2% 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.
Valuation & Earnings
This table compares Virtus Investment Partners and ONEX”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Virtus Investment Partners | $819.58 million | 1.06 | $121.75 million | $17.55 | 7.49 |
| ONEX | $899.00 million | 6.12 | $617.00 million | $6.68 | 10.79 |
ONEX has higher revenue and earnings than Virtus Investment Partners. Virtus Investment Partners is trading at a lower price-to-earnings ratio than ONEX, indicating that it is currently the more affordable of the two stocks.
About Virtus Investment Partners
Virtus Investment Partners, Inc. is a publicly owned investment manager. The firm primarily provides its services to individual and institutional clients. It launches separate client focused equity and fixed income portfolios. The firm launches equity, fixed income, and balanced mutual funds for its clients. It invests in the public equity, fixed income, and real estate markets. The firm also invests in exchange traded funds. It employs a multi manager approach for its products. The firm employs quantitative analysis to make its investments. It benchmarks the performance of its portfolios against the S&P 500 Index. The firm conducts in-house research to make its investments. Virtus Investment Partners, Inc. was founded in 1988 and is based in Hartford, Connecticut.
About ONEX
Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions. The firm makes investments in buyouts, large- middle market, large-cap, mid-cap, and small-cap market and distressed companies. It also invests in recapitalization, growth capital, corporate carve-outs of subsidiaries and mission-critical supply divisions from multinational corporations, operational restructurings of undervalued businesses, and builds up. The firm seeks to invest in technology, electronics manufacturing services, industrial, aerospace, healthcare, retail, restaurants, industrials products, customer care services, metal services, building products, entertainment, gaming, cabinetry products, commercial vehicles, commercial and investment banking, financial services, commercial and multi-unit residential real estate. It invests in global businesses headquartered in North America, including United States and Canada, or Europe. The firm seeks to invest between $125 million and $1 billion in companies that have minimum revenues of $300 million. It does not consider size if the company is in an industry in which the firm already has presence. The firm seeks to make direct as well as co-investments through managed private equity, real estate and credit funds. It seeks to acquire a control position in its portfolio companies. Onex Corporation was founded in 1984 and is based in Toronto, Canada with additional offices in New York, New York; Englewood Cliffs, New Jersey; Boston, Massachusetts and London, United Kingdom.
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