Critical Survey: AllianceBernstein Holding L.P. (AB) vs. Federated Investors (FII)
AllianceBernstein Holding L.P. (NYSE: AB) and Federated Investors (NYSE:FII) are both mid-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.
Earnings and Valuation
This table compares AllianceBernstein Holding L.P. and Federated Investors’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AllianceBernstein Holding L.P.||$232.17 million||10.15||$203.84 million||$2.18||11.56|
|Federated Investors||$1.13 billion||2.79||$345.66 million||$2.08||14.96|
Federated Investors has higher revenue and earnings than AllianceBernstein Holding L.P.. AllianceBernstein Holding L.P. is trading at a lower price-to-earnings ratio than Federated Investors, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
19.4% of AllianceBernstein Holding L.P. shares are owned by institutional investors. Comparatively, 82.9% of Federated Investors shares are owned by institutional investors. 2.7% of AllianceBernstein Holding L.P. shares are owned by insiders. Comparatively, 7.1% of Federated Investors shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
AllianceBernstein Holding L.P. has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Federated Investors has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.
AllianceBernstein Holding L.P. pays an annual dividend of $1.96 per share and has a dividend yield of 7.8%. Federated Investors pays an annual dividend of $1.00 per share and has a dividend yield of 3.2%. 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. Federated Investors pays out 48.1% of its earnings in the form of a dividend.
This is a breakdown of current ratings for AllianceBernstein Holding L.P. and Federated Investors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|AllianceBernstein Holding L.P.||0||2||3||0||2.60|
AllianceBernstein Holding L.P. presently has a consensus price target of $26.33, indicating a potential upside of 4.50%. Federated Investors has a consensus price target of $27.29, indicating a potential downside of 12.29%. Given AllianceBernstein Holding L.P.’s stronger consensus rating and higher probable upside, equities analysts plainly believe AllianceBernstein Holding L.P. is more favorable than Federated Investors.
This table compares AllianceBernstein Holding L.P. and Federated Investors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|AllianceBernstein Holding L.P.||6.74%||13.28%||13.28%|
Federated Investors beats AllianceBernstein Holding L.P. on 9 of the 16 factors compared between the two stocks.
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.
About Federated Investors
Federated Investors, Inc. (Federated) is a provider of investment management products and related financial services. Federated operates through investment management business segment. It is engaged in sponsoring, marketing and providing investment-related services to various investment products, including mutual funds and Separate Accounts, which include separately managed accounts, institutional accounts, sub-advised funds and other managed products. It operates in one segment, the investment management business. As of December 31, 2016, Federated provided investment advisory services to 124 sponsored investment companies and other funds (Federated Funds). It markets these funds to banks, brokers and dealers and other financial intermediaries using them to meet the needs of their customers and clients, including retail investors, corporations and retirement plans. The Company offers a range of products and strategies, including money market, equity and fixed-income investments.
Receive News & Ratings for AllianceBernstein Holding L.P. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AllianceBernstein Holding L.P. and related companies with MarketBeat.com's FREE daily email newsletter.