Affiliated Managers Group (AMG) and UBS AG (UBS) Critical Contrast
Affiliated Managers Group (NYSE: AMG) and UBS AG (NYSE:UBS) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.
Insider & Institutional Ownership
96.1% of Affiliated Managers Group shares are held by institutional investors. Comparatively, 31.6% of UBS AG shares are held by institutional investors. 1.4% of Affiliated Managers Group shares are held by insiders. Comparatively, 1.0% of UBS AG shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of recent recommendations for Affiliated Managers Group and UBS AG, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Affiliated Managers Group||0||2||5||0||2.71|
Affiliated Managers Group currently has a consensus price target of $206.43, suggesting a potential upside of 10.69%. Given Affiliated Managers Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Affiliated Managers Group is more favorable than UBS AG.
Affiliated Managers Group pays an annual dividend of $0.80 per share and has a dividend yield of 0.4%. UBS AG pays an annual dividend of $0.60 per share and has a dividend yield of 3.5%. Affiliated Managers Group pays out 8.7% of its earnings in the form of a dividend. UBS AG pays out 55.0% 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. UBS AG has increased its dividend for 4 consecutive years. UBS AG is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Affiliated Managers Group has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, UBS AG has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.
Valuation and Earnings
This table compares Affiliated Managers Group and UBS AG’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Affiliated Managers Group||$2.21 billion||4.72||$842.60 million||$9.24||20.18|
|UBS AG||$30.48 billion||2.07||$4.05 billion||$1.09||15.61|
UBS AG has higher revenue and earnings than Affiliated Managers Group. UBS AG 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.
This table compares Affiliated Managers Group and UBS AG’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Affiliated Managers Group||23.29%||17.63%||8.93%|
Affiliated Managers Group beats UBS AG on 12 of the 17 factors compared between the two stocks.
Affiliated Managers Group Company Profile
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.
UBS AG Company Profile
UBS Group AG is a holding company and conducts its operations through UBS AG and its subsidiaries. The Company comprises Corporate Center and five business divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management and the Investment Bank. Wealth Management division provides advice and tailored financial services to wealthy private clients around the world, except those served by Wealth Management Americas. Wealth Management Americas division is a wealth manager in the Americas in terms of financial advisor productivity and invested assets by financial advisor. Personal & Corporate Banking division provides financial products and services to private, corporate and institutional clients in Switzerland. Asset Management division provides investment management products and services, platform solutions and advisory support. Investment Bank division provides investment advice, financial solutions and capital markets access.
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