Investors are closely examining Grupo Aval Acciones y Valores (NYSE: AVAL) and Invesco (NYSE: IVZ) to determine which finance company presents a more compelling stock opportunity. This analysis compares the two firms on several factors, including earnings strength, institutional ownership, dividends, risk, valuation, profitability, and analyst recommendations.
Institutional Ownership
Institutional investors own just 0.2% of Grupo Aval’s shares, a stark contrast to Invesco, where institutional ownership stands at 66.1%. This significant difference suggests that larger financial entities have greater confidence in Invesco’s long-term performance. Furthermore, 1.2% of Invesco’s shares are held by company insiders, indicating a level of confidence from its management.
Analyst Ratings
Current ratings and target prices for both companies, as compiled by MarketBeat.com, indicate a mixed outlook from analysts. While specific ratings vary, the consensus leans towards Invesco being the more favorable option based on various performance metrics.
Earnings and Valuation Comparison
A comparison of gross revenue and earnings per share reveals that while Invesco generates lower revenue, it boasts higher earnings compared to Grupo Aval. Notably, Grupo Aval is currently trading at a lower price-to-earnings ratio, making it appear more affordable than Invesco.
Dividends
When it comes to dividends, Grupo Aval offers an annual dividend of $0.11 per share, yielding 2.7%. In contrast, Invesco pays an annual dividend of $0.84 per share, achieving a higher yield of 3.4%. Grupo Aval allocates 33.3% of its earnings to dividends, whereas Invesco pays out 57.1%. Notably, Invesco has successfully raised its dividend for five consecutive years, establishing itself as a more robust dividend stock due to its higher yield and consistent growth.
Profitability and Risk Analysis
Profitability metrics, including net margins and returns on equity and assets, favor Invesco. Additionally, volatility assessments show that Grupo Aval has a beta of 0.83, indicating its share price is 17% less volatile than the S&P 500. Conversely, Invesco’s beta is 1.72, suggesting its share price is 72% more volatile than the benchmark index.
In summary, Invesco outperforms Grupo Aval across 15 out of 18 comparative factors.
About Grupo Aval Acciones y Valores
Founded in 1994 and headquartered in Bogotá, Colombia, Grupo Aval Acciones y Valores S.A. offers a comprehensive array of financial services. These include traditional deposit products, commercial and consumer loans, pension and severance fund management, investment banking, and mobile banking services. The company also engages in various equity investments across sectors like infrastructure, energy, and agribusiness.
About Invesco
Invesco Ltd., established in 1935 and based in Atlanta, Georgia, is a publicly owned investment manager. The firm caters to a diverse clientele, including retail and institutional investors. Invesco manages a wide range of equity and fixed income portfolios and is involved in launching mutual funds and exchange-traded funds. Its investment strategies extend to alternative markets, including commodities and currencies.
As investors weigh these two finance companies, the metrics suggest that Invesco may hold a stronger position in the current market landscape.
