GAM (GMHLY) and Its Rivals Critical Review

GAM (OTCMKTS:GMHLYGet Rating) is one of 1,112 publicly-traded companies in the “Asset Management” industry, but how does it weigh in compared to its rivals? We will compare GAM to related companies based on the strength of its risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Insider and Institutional Ownership

32.9% of shares of all “Asset Management” companies are owned by institutional investors. 18.0% of shares of all “Asset Management” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

GAM pays an annual dividend of $0.12 per share and has a dividend yield of 200.7%. GAM pays out 58.2% of its earnings in the form of a dividend. As a group, “Asset Management” companies pay a dividend yield of 7.2% and pay out 700.6% of their earnings in the form of a dividend. GAM is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings for GAM and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GAM 0 0 0 0 N/A
GAM Competitors 1063 4507 5637 82 2.42

As a group, “Asset Management” companies have a potential upside of 34.32%. Given GAM’s rivals higher possible upside, analysts clearly believe GAM has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares GAM and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
GAM N/A N/A 0.29
GAM Competitors $514.05 million $8.33 million -5.48

GAM’s rivals have higher revenue and earnings than GAM. GAM is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares GAM and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GAM N/A N/A N/A
GAM Competitors 377.82% 8.16% 5.03%

Summary

GAM rivals beat GAM on 7 of the 10 factors compared.

About GAM

(Get Rating)

GAM Holding AG is a publicly owned asset management holding company. The firm provides its services to institutions, financial intermediaries and private investors. Through its subsidiaries, the firm manages separate client focused equity and fixed income portfolios. Through its subsidiaries, it also launches and manages equity, fixed income, and balanced mutual funds. Through its subsidiaries, the firm invests in public equity and fixed income markets. GAM Holding AG is based in Zurich, Switzerland with an additional office in Geneva, Switzerland and London, United Kingdom.

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