Affiliated Managers Group (NYSE: AMG) and Bank Of New York Mellon Corporation (The) (NYSE:BK) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Institutional & Insider Ownership

96.1% of Affiliated Managers Group shares are owned by institutional investors. Comparatively, 81.8% of Bank Of New York Mellon Corporation (The) shares are owned by institutional investors. 1.4% of Affiliated Managers Group shares are owned by company insiders. Comparatively, 3.6% of Bank Of New York Mellon Corporation (The) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Affiliated Managers Group has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, Bank Of New York Mellon Corporation (The) has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares Affiliated Managers Group and Bank Of New York Mellon Corporation (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Affiliated Managers Group 22.99% 17.45% 8.75%
Bank Of New York Mellon Corporation (The) 23.14% 10.51% 1.11%

Dividends

Affiliated Managers Group pays an annual dividend of $0.80 per share and has a dividend yield of 0.4%. Bank Of New York Mellon Corporation (The) pays an annual dividend of $0.96 per share and has a dividend yield of 1.8%. Affiliated Managers Group pays out 8.9% of its earnings in the form of a dividend. Bank Of New York Mellon Corporation (The) pays out 28.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Affiliated Managers Group has raised its dividend for 4 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations for Affiliated Managers Group and Bank Of New York Mellon Corporation (The), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Affiliated Managers Group 0 2 5 0 2.71
Bank Of New York Mellon Corporation (The) 2 9 4 1 2.25

Affiliated Managers Group currently has a consensus target price of $206.43, indicating a potential upside of 5.54%. Bank Of New York Mellon Corporation (The) has a consensus target price of $54.88, indicating a potential upside of 3.77%. Given Affiliated Managers Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Affiliated Managers Group is more favorable than Bank Of New York Mellon Corporation (The).

Earnings and Valuation

This table compares Affiliated Managers Group and Bank Of New York Mellon Corporation (The)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Affiliated Managers Group $2.21 billion 4.95 $842.60 million $9.02 21.68
Bank Of New York Mellon Corporation (The) $15.55 billion 3.51 $3.53 billion $3.42 15.46

Bank Of New York Mellon Corporation (The) has higher revenue and earnings than Affiliated Managers Group. Bank Of New York Mellon Corporation (The) is trading at a lower price-to-earnings ratio than Affiliated Managers Group, indicating that it is currently the more affordable of the two stocks.

Summary

Affiliated Managers Group beats Bank Of New York Mellon Corporation (The) on 12 of the 18 factors compared between the two stocks.

About Affiliated Managers Group

Affiliated Managers Group, Inc. is an asset management company with equity investments in boutique investment management firms. The Company operates in three segments, which represent its principal distribution channels: Institutional, Mutual Fund and High Net Worth. The equity method investments in the Institutional distribution channel are made in relationships with public and private client entities, including foundations, endowments, sovereign wealth funds and retirement plans for corporations and municipalities. The equity method investments in the Mutual Fund distribution channel are made in advisory or sub-advisory relationships with active return-oriented mutual funds, Undertakings for Collective Investment in Transferable Securities and other retail products. The equity method investments in the High Net Worth distribution channel are made in relationships with high net worth and ultra-high net worth individuals, families, trusts, foundations, endowments and retirement plans.

About Bank Of New York Mellon Corporation (The)

The Bank of New York Mellon Corporation is an investments company. The Company operates businesses through two segments: Investment Management and Investment Services. The Company also has an Other segment, which includes the leasing portfolio, corporate treasury activities (including its investment securities portfolio), derivatives and other trading, corporate and bank-owned life insurance and renewable energy investments, and business exits. As of December 31, 2016, the Company had $29.9 trillion in assets under custody and/or administration and $1.6 trillion in assets under management. The Company’s Investment Management boutiques offer a range of actively managed equity, fixed income, alternative and liability-driven investments, along with passive products and cash management. The Company offers asset servicing, clearing services, issuer services and treasury services to its clients.

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