Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, investment manager Och-Ziff Capital Management Group LLC (OZM +0.00%) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Och-Ziff and see what CAPS investors are saying about the stock right now.
Och-Ziff facts
|
Headquarters (founded) |
New York (1994) |
|
Market Cap |
$1.4 billion |
|
Industry |
Asset management |
|
Trailing-12-Month Revenue |
$1.2 billion |
|
Management |
Chairman/CEO Daniel Och |
|
Return on Equity (average, past 3 years) |
22.2% |
|
Cash / Debt |
$162.5 million / $612.4 million |
|
Dividend Yield |
31.9% |
|
Competitors |
AllianceBernstein L.P. |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 26% of the 97 members who have rated Och-Ziff believe the stock will underperform the S&P 500 going forward.
Just yesterday, one of those Fools, All-Star MegaShort, explained why Och-Ziff looked overvalued:
When valuing asset managers, I take tangible book value (TBV) and add a percentage of assets under management (AUM).
The percent of AUM varies depending on the quality of the business (reflected in fees and growth). A great alternative asset manager might be worth 5% of AUM, a mediocre alternative might be worth 3%, a great mutual fund manager 2%, a mediocre mutual fund manager 1%.
[Och-Ziff's] TBV is -$250M and AUM is $34.6B. To justify the market cap, the percent of AUM needs to be 12.3%. The valuation appears quite unreasonable.
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