Financial Comparison: Noah (NOAH) & Artisan Partners Asset Management (APAM)

Noah (NYSE:NOAH) and Artisan Partners Asset Management (NYSE:APAM) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Dividends

Artisan Partners Asset Management pays an annual dividend of $2.40 per share and has a dividend yield of 8.8%. Noah does not pay a dividend. Artisan Partners Asset Management pays out 99.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

49.4% of Noah shares are owned by institutional investors. Comparatively, 62.9% of Artisan Partners Asset Management shares are owned by institutional investors. 28.2% of Artisan Partners Asset Management shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Noah and Artisan Partners Asset Management, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noah 0 0 3 0 3.00
Artisan Partners Asset Management 1 2 1 0 2.00

Noah currently has a consensus target price of $58.00, suggesting a potential upside of 33.70%. Artisan Partners Asset Management has a consensus target price of $32.25, suggesting a potential upside of 18.61%. Given Noah’s stronger consensus rating and higher possible upside, research analysts clearly believe Noah is more favorable than Artisan Partners Asset Management.

Volatility & Risk

Noah has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500. Comparatively, Artisan Partners Asset Management has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.

Profitability

This table compares Noah and Artisan Partners Asset Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noah 26.20% 17.17% 12.18%
Artisan Partners Asset Management 11.60% 199.82% 25.27%

Valuation & Earnings

This table compares Noah and Artisan Partners Asset Management’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Noah $434.49 million 5.73 $117.26 million $2.01 21.58
Artisan Partners Asset Management $795.60 million 2.63 $49.59 million $2.41 11.28

Noah has higher earnings, but lower revenue than Artisan Partners Asset Management. Artisan Partners Asset Management is trading at a lower price-to-earnings ratio than Noah, indicating that it is currently the more affordable of the two stocks.

Summary

Noah beats Artisan Partners Asset Management on 9 of the 16 factors compared between the two stocks.

Noah Company Profile

Noah Holdings Limited, through its subsidiaries, operates as a wealth and asset management service provider with focus on wealth investment and asset allocation services for high net worth individuals and enterprises in the People's Republic of China. The company operates through three segments: Wealth Management, Asset Management, and Other Financial Service. It offers onshore and offshore fixed income, private equity, secondary market equity, and insurance products; and value-added financial and related services, such as investor education, corporate registration and tax planning, trust, financial leasing, and philanthropy. The company also provides private equity, real estate, secondary market equity, credit, and other investments; and online wealth management, lending, and payment technology services. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

Artisan Partners Asset Management Company Profile

Artisan Partners Asset Management Inc. is publicly owned investment manager. It provides its services to pension and profit sharing plans, trusts, endowments, foundations, charitable organizations, government entities, private funds and non-U.S. funds, as well as mutual funds, non-U.S. funds and collective trusts. It manages separate client-focused equity and fixed income portfolios. The firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of companies across all market capitalization. For fixed income component of its portfolio the firm invests in non-investment grade corporate bonds and secured and unsecured loans. It employs fundamental analysis to create its portfolios. Artisan Partners Asset Management Inc. was founded in 1994 and is based in Milwaukee, Wisconsin with additional offices in Atlanta, Georgia; New York City; San Francisco, California; Leawood, Kansas; and London, United Kingdom.

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