Eaton Vance (NASDAQ: DHIL) and Diamond Hill Investment Group (NASDAQ:DHIL) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Dividends

Eaton Vance pays an annual dividend of $1.24 per share and has a dividend yield of 2.3%. Diamond Hill Investment Group does not pay a dividend. Eaton Vance pays out 50.0% of its earnings in the form of a dividend. Eaton Vance has raised its dividend for 37 consecutive years.

Volatility and Risk

Eaton Vance has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Diamond Hill Investment Group has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Valuation & Earnings

This table compares Eaton Vance and Diamond Hill Investment Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eaton Vance $1.53 billion 4.14 $282.13 million $2.48 21.40
Diamond Hill Investment Group $145.20 million 4.59 $49.98 million N/A N/A

Eaton Vance has higher revenue and earnings than Diamond Hill Investment Group.

Profitability

This table compares Eaton Vance and Diamond Hill Investment Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eaton Vance 19.82% 33.96% 15.00%
Diamond Hill Investment Group 35.05% 26.57% 18.15%

Insider and Institutional Ownership

68.6% of Eaton Vance shares are owned by institutional investors. Comparatively, 60.4% of Diamond Hill Investment Group shares are owned by institutional investors. 6.4% of Diamond Hill Investment Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Eaton Vance and Diamond Hill Investment Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eaton Vance 0 4 3 0 2.43
Diamond Hill Investment Group 0 0 0 0 N/A

Eaton Vance currently has a consensus target price of $57.29, suggesting a potential upside of 7.92%. Given Eaton Vance’s higher possible upside, analysts plainly believe Eaton Vance is more favorable than Diamond Hill Investment Group.

Summary

Eaton Vance beats Diamond Hill Investment Group on 10 of the 15 factors compared between the two stocks.

Eaton Vance Company Profile

Eaton Vance Corp., through its subsidiaries, engages in the creation, marketing, and management of investment funds in the United States. It also provides investment management and counseling services to institutions and individuals. Further, the company operates as an adviser and distributor of investment companies and separate accounts. As of October 31, 2004, the company provided investment advisory or administration services to approximately 150 funds; approximately 1,300 separately managed individual and institutional accounts; and participated in approximately 40 retail-managed account broker/dealer programs. It markets and distributes shares of funds through a retail network of national and regional broker/dealers, banks, insurance companies, and financial planning firms. Eaton Vance Corp. was incorporated on January 29, 1981 and is headquartered in Boston, Massachusetts.

Diamond Hill Investment Group Company Profile

Diamond Hill Investment Group, Inc., together with its subsidiaries, provides investment advisory and fund administration services in the United States. It sponsors, distributes, and offers investment advisory and related services to a range of clients, such as corporations, mutual funds, retirement plans, public pension funds, endowments, foundations, financial institutions, and high net worth individuals. The company also provides fund administration services, including portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the mutual fund complex, as well as oversight of back-office service providers, such as the custodian, fund accountant, and transfer agent. It offers investment advisory services to third-party financial intermediaries comprising independent registered investment advisors, brokers, financial planners, and wealth advisers; and fund administration services primarily to mutual funds, institutional accounts, and private investment funds. The company was founded in 1990 and is based in Columbus, Ohio.

Receive News & Ratings for Eaton Vance Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Eaton Vance and related companies with MarketBeat.com's FREE daily email newsletter.