Value Line (VALU) & The Competition Financial Comparison

Value Line (NASDAQ: VALU) is one of 73 publicly-traded companies in the “Investment advice” industry, but how does it weigh in compared to its peers? We will compare Value Line to similar businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, risk, institutional ownership and profitability.

Insider and Institutional Ownership

7.2% of Value Line shares are owned by institutional investors. Comparatively, 52.9% of shares of all “Investment advice” companies are owned by institutional investors. 0.0% of Value Line shares are owned by insiders. Comparatively, 17.0% of shares of all “Investment advice” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Value Line and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Value Line 57.25% 35.37% 19.56%
Value Line Competitors 27.51% 30.45% 13.71%

Risk and Volatility

Value Line has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500. Comparatively, Value Line’s peers have a beta of 1.24, indicating that their average share price is 24% more volatile than the S&P 500.

Dividends

Value Line pays an annual dividend of $0.88 per share and has a dividend yield of 2.1%. Value Line pays out 36.4% of its earnings in the form of a dividend. As a group, “Investment advice” companies pay a dividend yield of 2.2% and pay out 28.4% of their earnings in the form of a dividend. Value Line has increased its dividend for 7 consecutive years. Value Line lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent recommendations and price targets for Value Line and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Value Line 0 0 0 0 N/A
Value Line Competitors 661 3097 3318 123 2.40

As a group, “Investment advice” companies have a potential upside of 6.70%. Given Value Line’s peers higher probable upside, analysts clearly believe Value Line has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Value Line and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Value Line $40.39 million $23.28 million 17.27
Value Line Competitors $2.37 billion $248.45 million 40.45

Value Line’s peers have higher revenue and earnings than Value Line. Value Line is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Value Line peers beat Value Line on 9 of the 12 factors compared.

Value Line Company Profile

Value Line, Inc. engages in the provision of investment research. It produces investment periodicals based on underlying research and making available copyright data, including certain proprietary ranking system and other proprietary information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. The company was founded by Arnold Bernhard in 1931 and is headquartered in New York, NY.