Analyzing Cannae (NYSE:CNNE) & Invesco (NYSE:IVZ)

Cannae (NYSE:CNNE) and Invesco (NYSE:IVZ) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Valuation & Earnings

This table compares Cannae and Invesco”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cannae	$423.60 million	1.43	-$513.20 million	($8.92)	-1.46
Invesco	$6.38 billion	1.72	-$281.70 million	($1.60)	-15.44

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cannae and Invesco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cannae	1	1	1	0	2.00
Invesco	0	10	5	0	2.33

Cannae presently has a consensus price target of $16.00, suggesting a potential upside of 22.66%. Invesco has a consensus price target of $27.96, suggesting a potential upside of 13.17%. Given Cannae’s higher possible upside, analysts plainly believe Cannae is more favorable than Invesco.

Profitability

This table compares Cannae and Invesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cannae	-121.15%	-31.78%	-24.73%
Invesco	-6.92%	10.26%	4.09%

Insider and Institutional Ownership

88.1% of Cannae shares are held by institutional investors. Comparatively, 66.1% of Invesco shares are held by institutional investors. 10.9% of Cannae shares are held by company insiders. Comparatively, 1.4% of Invesco shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Cannae pays an annual dividend of $0.60 per share and has a dividend yield of 4.6%. Invesco pays an annual dividend of $0.84 per share and has a dividend yield of 3.4%. Cannae pays out -6.7% of its earnings in the form of a dividend. Invesco pays out -52.5% 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 raised its dividend for 5 consecutive years.

Volatility & Risk

Cannae has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Invesco has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500.

Summary

Invesco beats Cannae on 12 of the 17 factors compared between the two stocks.

About Cannae

Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. was founded in 2014 and is based in Las Vegas, Nevada.

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 1935 and is based in Atlanta, Georgia with an additional office in Hamilton, Bermuda.