Pzena Investment Management, Inc. (NYSE:PZN) is an investment manager catering to wealthy families and other institutions. It has the largest market cap at $85.4 million, and its share price, although the highest at about $7, buys the most market cap per dollar of the three. It has a forward P/E of 14 and a dividend yield of 1.7%. For the most recent quarter, revenue grew 5.4% and earnings were flat. Although Pzena Investment Management, Inc. (NYSE:PZN)’s gross profit margin was down from the previous year, it remains a very high 45.2%.
Top holders include Fine Capital, with nearly a quarter of a million shares, and Renaissance Technologies, with about 125,000 shares. Renaissance’s bet on PZN is interesting because it usually is heavily invested in large caps.
Risks to consider: Neither past performance nor insider or institutional investment is a guarantee of future success.
Action to Take –> Together, these three stocks are quite promising. Due to the heavier institutional investment, I give PZN a slight edge over ACU. EVBS still has a way to go to prove itself, but now that it’s free of the bailout program, it could really blossom.
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– Bristol Voss
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