Analyzing U.S. Global Investors (GROW) and Federated Investors (FII)

U.S. Global Investors (NASDAQ:GROW) and Federated Investors (NYSE:FII) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Volatility & Risk

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U.S. Global Investors has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Federated Investors has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Dividends

U.S. Global Investors pays an annual dividend of $0.03 per share and has a dividend yield of 2.5%. Federated Investors pays an annual dividend of $1.08 per share and has a dividend yield of 3.6%. Federated Investors pays out 45.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations for U.S. Global Investors and Federated Investors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. Global Investors	0	0	0	0	N/A
Federated Investors	0	6	1	0	2.14

Federated Investors has a consensus target price of $27.14, suggesting a potential downside of 8.61%. Given Federated Investors’ higher probable upside, analysts plainly believe Federated Investors is more favorable than U.S. Global Investors.

Valuation & Earnings

This table compares U.S. Global Investors and Federated Investors’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
U.S. Global Investors	$6.26 million	2.93	$640,000.00	N/A	N/A
Federated Investors	$1.14 billion	2.64	$220.29 million	$2.39	12.43

Federated Investors has higher revenue and earnings than U.S. Global Investors.

Profitability

This table compares U.S. Global Investors and Federated Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
U.S. Global Investors	-98.83%	-22.19%	-20.30%
Federated Investors	19.40%	29.33%	17.26%

Institutional & Insider Ownership

25.2% of U.S. Global Investors shares are owned by institutional investors. Comparatively, 85.3% of Federated Investors shares are owned by institutional investors. 5.3% of Federated Investors shares are owned 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.

Summary

Federated Investors beats U.S. Global Investors on 10 of the 13 factors compared between the two stocks.

U.S. Global Investors Company Profile

U.S. Global Investors, Inc. is a publicly owned investment manager. The firm primarily provides its services to investment companies. It also provides its services to pooled investment vehicles. The firm manages equity and fixed income mutual funds for its clients. It also manages hedge funds. The firm also manages exchange traded funds. It invests in the public equity and fixed income markets across the globe. It invests in G.A.R.P. and value stocks to make its equity investments. The firm employs a fundamental and quantitative analysis with top-down and bottom-up stock picking approach to make its investments. U.S. Global Investors, Inc. was founded in 1968 and is based in San Antonio, Texas.

Federated Investors Company Profile

Federated Investors, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors. Through its subsidiaries, it manages separate client-focused equity, fixed income, balanced and money market mutual funds along with separate client-focused equity, fixed income, money market, and balanced portfolios. Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of small-cap, mid-cap, and large-cap companies. The firm makes its fixed income investments in ultra-short, short-term, and intermediate-term mortgage-backed, U.S. Government, U.S. corporate, high yield, and municipal securities. It employs both fundamental and quantitative analysis to make its equity investments. Federated Investors, Inc. was founded in 1955 and is based in Pittsburgh, Pennsylvania with additional offices in New York City and London, United Kingdom.