Acadian Asset Management (NYSE:AAMI – Get Free Report) and ChoiceOne Financial Services (NASDAQ:COFS – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.
Dividends
Acadian Asset Management pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. ChoiceOne Financial Services pays an annual dividend of $1.16 per share and has a dividend yield of 3.9%. Acadian Asset Management pays out 1.7% of its earnings in the form of a dividend. ChoiceOne Financial Services pays out 84.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ChoiceOne Financial Services has increased its dividend for 13 consecutive years. ChoiceOne Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
98.7% of Acadian Asset Management shares are held by institutional investors. Comparatively, 19.9% of ChoiceOne Financial Services shares are held by institutional investors. 26.0% of Acadian Asset Management shares are held by company insiders. Comparatively, 5.9% of ChoiceOne Financial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Acadian Asset Management | 0 | 4 | 1 | 0 | 2.20 |
| ChoiceOne Financial Services | 0 | 2 | 3 | 0 | 2.60 |
Acadian Asset Management presently has a consensus target price of $47.67, indicating a potential downside of 1.51%. ChoiceOne Financial Services has a consensus target price of $37.00, indicating a potential upside of 22.84%. Given ChoiceOne Financial Services’ stronger consensus rating and higher possible upside, analysts clearly believe ChoiceOne Financial Services is more favorable than Acadian Asset Management.
Volatility & Risk
Acadian Asset Management has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, ChoiceOne Financial Services has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.
Valuation & Earnings
This table compares Acadian Asset Management and ChoiceOne Financial Services”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Acadian Asset Management | $505.60 million | 3.42 | $85.00 million | $2.37 | 20.42 |
| ChoiceOne Financial Services | $139.10 million | 3.25 | $26.73 million | $1.37 | 21.99 |
Acadian Asset Management has higher revenue and earnings than ChoiceOne Financial Services. Acadian Asset Management is trading at a lower price-to-earnings ratio than ChoiceOne Financial Services, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Acadian Asset Management and ChoiceOne Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Acadian Asset Management | 15.70% | 166.57% | 17.04% |
| ChoiceOne Financial Services | 10.57% | 11.52% | 1.16% |
Summary
Acadian Asset Management beats ChoiceOne Financial Services on 11 of the 17 factors compared between the two stocks.
About Acadian Asset Management
Acadian Asset Management Inc. is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as BrightSphere Investment Group plc. BrightSphere Investment Group Inc. was formed in 1980 and is based in Boston, Massachusetts.
About ChoiceOne Financial Services
ChoiceOne Financial Services, Inc. operates as the bank holding company for ChoiceOne Bank that provides banking services to corporations, partnerships, and individuals in Michigan. The company offers various deposit products, including time, savings, and demand deposits, safe deposit, and automated transaction machine services. It also provides commercial lending products, such as business, industry, agricultural, construction, inventory, and real estate loans; and consumer loans comprising direct and indirect loans to consumers and purchasers of residential and real properties. In addition, the company offers alternative investment products, which include annuities and mutual funds; and sells insurance policies, such as life and health for commercial and consumer clients. Further, it provides trust and wealth management services. ChoiceOne Financial Services, Inc. was founded in 1898 and is headquartered in Sparta, Michigan.
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