Reviewing Fidus Investment Corporation (FDUS)’s and Waddell & Reed Financial Inc. (NYSE:WDR)’s results

As Asset Management businesses, Fidus Investment Corporation (NASDAQ:FDUS) and Waddell & Reed Financial Inc. (NYSE:WDR), are affected by compare. This especially applies to their analyst recommendations, profitability, risk, dividends, institutional ownership, earnings and valuation.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fidus Investment Corporation 76.42M 4.97 49.45M 2.04 7.68
Waddell & Reed Financial Inc. 1.16B 1.16 183.59M 2.20 8.35

Table 1 showcases the top-line revenue, earnings per share (EPS) and valuation of Fidus Investment Corporation and Waddell & Reed Financial Inc. Waddell & Reed Financial Inc. has higher revenue and earnings than Fidus Investment Corporation. Business that currently has a lower price-to-earnings ratio means that it is the more affordable of the two businesses. Fidus Investment Corporation has been trading at a lower price-to-earnings ratio than Waddell & Reed Financial Inc., which means that it is at the moment the more affordable of the two companies.

Profitability

Table 2 shows the return on equity, return on assets and net margins of the two firms.

Net Margins Return on Equity Return on Assets
Fidus Investment Corporation 64.71% 0% 0%
Waddell & Reed Financial Inc. 15.83% 20.7% 14.1%

Dividends

Fidus Investment Corporation pays out its dividends annually at $1.56 per share and 10.13% dividend yield. Meanhile, Waddell & Reed Financial Inc.’s yearly dividend is $1 per share and 5.65% dividend yield.

Analyst Recommendations

Ratings and Recommendations for Fidus Investment Corporation and Waddell & Reed Financial Inc. can be find in next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Fidus Investment Corporation 0 0 1 3.00
Waddell & Reed Financial Inc. 1 0 0 1.00

$18 is Fidus Investment Corporation’s consensus price target while its potential upside is 15.98%. Competitively the consensus price target of Waddell & Reed Financial Inc. is $18, which is potential 1.81% upside. Based on the data shown earlier, Fidus Investment Corporation is looking more favorable than Waddell & Reed Financial Inc., analysts belief.

Insider and Institutional Ownership

The shares of both Fidus Investment Corporation and Waddell & Reed Financial Inc. are owned by institutional investors at 29.33% and 0% respectively. About 1.27% of Fidus Investment Corporation’s share are held by insiders. On the other hand, insiders held about 2.1% of Waddell & Reed Financial Inc.’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Fidus Investment Corporation -0.19% 11.95% 11.7% 2.91% 22.33% 33.88%
Waddell & Reed Financial Inc. 0.6% 7.3% -9.06% -9.91% -7.46% 1.6%

For the past year Fidus Investment Corporation’s stock price has bigger growth than Waddell & Reed Financial Inc.

Summary

On 10 of the 17 factors Waddell & Reed Financial Inc. beats Fidus Investment Corporation.

Fidus Investment Corporation is a business development company specializing in leveraged buyouts, refinancings, change of ownership transactions, recapitalizations, strategic acquisitions, mezzanine, growth capital, business expansion, lower middle market investments, debt investments, subordinated and second lien loans, senior secured and unitranche debt, preferred equity, warrants, subordinated debt, senior subordinated notes, junior secured loans, and unitranche loans. It does not invest in turnarounds or distressed situations. The fund prefers to invest in aerospace and defense, business services, consumer products and services including retail, food, and beverage, healthcare products and services, industrial products and services, information technology services, niche manufacturing, transportation and logistics, and value-added distribution sectors. It seeks to invest in companies based in United States. The fund typically invests between $5 million and $15 million per transaction in companies with annual revenues between $10 million and $150 million and an annual EBITDA between $3 million and $20 million, but it can occasionally invest in larger or smaller companies. It seeks to acquire minority equity stakes and board observation rights in conjunction with its investments.

Waddell & Reed Financial, Inc., through its subsidiaries, provides investment management and advisory, investment product underwriting and distribution, and shareholder services administration to mutual funds, and institutional and separately managed accounts in the United States. The company acts as an investment adviser for institutional and other private investors, and provides sub advisory services to other investment companies; and underwrites and distributes registered open-end mutual fund portfolios. It also offers fee-based asset allocation investment advisory products to advisors channel customers; distributes business partnersÂ’ variable annuity products, and retirement and life insurance products to advisors channel customers; and sells life insurance and disability products underwritten by various carriers. The company distributes investment products through its wholesale channel comprising other broker/dealers, various retirement platforms, and registered investment advisors, as well as through independent financial advisors; and markets investment advisory services to institutional investors directly or through consultants. Waddell & Reed Financial, Inc. was founded in 1937 and is based in Overland Park, Kansas.