Artisan Partners Asset Management (APAM) vs. AllianceBernstein Holding L.P. (AB) Critical Analysis
Artisan Partners Asset Management (NYSE: APAM) and AllianceBernstein Holding L.P. (NYSE:AB) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
This is a summary of current ratings and recommmendations for Artisan Partners Asset Management and AllianceBernstein Holding L.P., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Artisan Partners Asset Management||1||4||2||0||2.14|
|AllianceBernstein Holding L.P.||0||2||3||0||2.60|
Artisan Partners Asset Management currently has a consensus target price of $29.50, suggesting a potential downside of 5.60%. AllianceBernstein Holding L.P. has a consensus target price of $26.33, suggesting a potential upside of 8.15%. Given AllianceBernstein Holding L.P.’s stronger consensus rating and higher probable upside, analysts plainly believe AllianceBernstein Holding L.P. is more favorable than Artisan Partners Asset Management.
Insider & Institutional Ownership
99.8% of Artisan Partners Asset Management shares are owned by institutional investors. Comparatively, 19.4% of AllianceBernstein Holding L.P. shares are owned by institutional investors. 30.0% of Artisan Partners Asset Management shares are owned by insiders. Comparatively, 2.7% of AllianceBernstein Holding L.P. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Artisan Partners Asset Management pays an annual dividend of $2.40 per share and has a dividend yield of 7.7%. AllianceBernstein Holding L.P. pays an annual dividend of $1.96 per share and has a dividend yield of 8.0%. Artisan Partners Asset Management pays out 145.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AllianceBernstein Holding L.P. pays out 89.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AllianceBernstein Holding L.P. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Artisan Partners Asset Management and AllianceBernstein Holding L.P.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Artisan Partners Asset Management||$745.91 million||2.08||$250.43 million||$1.65||18.94|
|AllianceBernstein Holding L.P.||$232.17 million||9.81||$203.84 million||$2.18||11.17|
Artisan Partners Asset Management has higher revenue and earnings than AllianceBernstein Holding L.P.. AllianceBernstein Holding L.P. is trading at a lower price-to-earnings ratio than Artisan Partners Asset Management, indicating that it is currently the more affordable of the two stocks.
This table compares Artisan Partners Asset Management and AllianceBernstein Holding L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Artisan Partners Asset Management||11.37%||78.75%||9.79%|
|AllianceBernstein Holding L.P.||6.74%||13.28%||13.28%|
Volatility and Risk
Artisan Partners Asset Management has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, AllianceBernstein Holding L.P. has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.
About Artisan Partners Asset Management
Artisan Partners Asset Management Inc. is an investment management company. The Company provides a range of the United States, non-United States and global investment strategies, each of which is managed by one of its investment teams. The Company provides investment management services to separate accounts, mutual funds and other pooled investment vehicles. The Company offers its investment management services primarily to institutions and through intermediaries that operate with institutional-like decision-making processes and have long-term investment horizons. The Company provides clients with multiple equity investment strategies spanning market capitalization segments and investing styles in both the United States and non-United States markets. The Company also offers one fixed income strategy, the Artisan High Income strategy. Each strategy is managed by one of the investment teams.
About AllianceBernstein Holding L.P.
AllianceBernstein Holding L.P. is engaged in providing research, investment management and related services to a range of clients through its three buy-side distribution channels: Institutions, Retail and Private Wealth Management, and its sell-side business, Bernstein Research Services. The Company offers a range of investment services, including equity strategies, with global and regional portfolios across capitalization ranges and investment strategies, including value, growth and equities; traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies; passive management, including index and enhanced index strategies; alternative investments, including hedge funds, fund of funds and private equity, and multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds. The Company’s services span various investment disciplines, including market capitalization, term and geographic locations.
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